If you use YPbPR to connect with your HDTV display, you can do something similar to what you want using Catalyst drivers and an ATI card.
My RPTV only supports 480p and 1080i timings and I "map" a gaming resolution of 1280x1024 to my 1080i Display. Catalyst drivers "used" to have a feature called CTS or "Center Timing Support", now it is apparently enabled automatically.
What it does is map the 5:4 resolution (1280x1024) to the Center of my widescreen (16:9)display leaving black bars on the side. I picked that resolution because on my display the bars are only on the sides and menus are visable top and bottom, my rig can handle that resolution in most games, and it is supported in most games. You can play around with different resolutions to find what works best for your display, and it also has custom timing support as well to configure the display itself (example: 1776x1000 as "1080i" timings) so that you can minimize overscan.
To play "any" game on my widescreen, I simply make my Widescreen the "Primary" display and start up any game (its best to pre-configure game resolutions to 1280x1024) and Presto..Widescreen gaming with no custom resolutions, powerstrip, messing with timings.
I still prefer to play in front of my 22" CRT, but it has made all the difference for ease of use gaming on the big display..anyone who has configured their display with powerstrip for gaming in interlaced timings knows exactly what I'm talking about.