I can see that you have bars down each side of the image but I am not sure what you are showing us - in Videostudio you will see those bars if the preview window is stretched a little - which is what it seems to be by default - if that is the case then the bars will not show when you produce your final video.
tell us about the video you are using - please RIGHT click over the video in the timeline and from the pop-up choose 'properties' - please make a picture of the properties box and post it here as an attachment - then we can see if you have a true widescreen video
Ok - so the basic problem is that your video is an odd size having a height/width ratio of 1:1.6 instead of a normal 1:1.77
If you really need to lose those bars then you need to distort the video so that it is slightly stretched horizontally to fit the width OR increase the overall size of the image so that it fits side to side but you will then lose some top or bottom or a bit of each