Tried my best with the RC1 of MB3.
Don't know if anyone already worked on this or nor but anyway:
The handling of pictures even differs between embedded and normal.
While in embedded the actual picture is irrelevant for the frame the picture is displayed in.
In normal it will squeeze a 16:9 Image to the bottom of the square and resize the whole container :/
Got some pictures for a better understanding using my own Theater Mode skin
1. Doesn't look too bad, if the whole window is sized correctly (this is embedded)
2. But when I reduce the width... (this is embedded too)
the picture element is widthDocked to X:Panel.60 while the lyrcs part is xAnchored to Panel.62
Seems like the image is just not recognized as 16:9 aspect ratio :/
3. Now it gets really strange. Exact same code in the native Theater Mode.
Here you can see the image is sqeezed into the bottom of the picture frame and stays inside.
No overlapping like in opicture 2
These are all of the whole panel and as you can see some strange thing happen.
I remember a version, where this did not happen. But I think it was a fixed exe from Steven, if I am correct.
hope this can get resolved
greets Shadeblast