Black Edge on Remote Screen (Small Remote Window)

Options

On my new laptop (Win7 Pro), when I connect to my remote computer, the visible screen is small with black edges on sides.  Switching to 'full  screen' does not help.  I do not have this issue connecting to the same computer with another laptop (same OS).  When I connect to another host, the screen is larger, but still (smaller) black edges on sides, but has some distortion. 

This makes working on the remote screen very difficult; any ideas how to remedy?

Thanks!