iPhone 4 HDMI output for photo slideshow. Aspect ratio squished?

Bought the Apple Digital AV Adapter and tested it today. Hooked it up via an HDMI cable to a little HD TV. Videos (YouTube or in Photo Gallery) display as they should, in widescreen just as they do on the screen. However, when I start the photo slideshow the photos are squished to the center. A full landscape photo that takes up the whole iPhone screen is squished into a square in the center of the screen. Vertical pictures are also squished to the center, distorting the ratio. When the slideshow comes to a video in my library, it displays correctly.

I talked to Apple by chat and phone and they hadn't heard of this. Can't find anything on the web. I am running the newest iOS 5. There aren't any settings to adjust the video output in settings. If the videos were squished also it would make sense...but they aren't so it doesn't.

Anyone have any ideas?