In case some of the other reviewers are confused, this film has been presented in the aspect ratio that the director intended it to be in. Yes, the VHS edition shows "more of the frame", but the film was shot with the intention of "matting out" the top and bottom of the screen for theatrical distribution. Therefore in the VHS "full-screen" version, you are only seeing "more" of what the director DOESN'T WANT YOU TO SEE.
Although I understand the frustration of those who are used to seeing the "TV" version, this transfer preserves the integrity of the film as a work of art. That may sound pretensious, but as someone who has much respect for Auteurs like Terry Gilliam, I'm sure I come off as pretensious most of the time.
Oh yeah, this film is also EXCELLENT, but it's still no BRAZIL.
PS: MOST films, with the exception of those shot in Anamorphic or Super 35, are shot in full-frame and then matted for projection. The stuff that the letterboxing "blocks out" is, for the most part, junk. Of course, there are exceptions. Such as when a filmmaker wants the frame to look good in a theatre as well as on television. See Kubrik's "Eyes Wide Shut" (co-written by Frederic Raphael) for a good example of this.