It's a Standard Definition camcorder.

http://www.canon.com.au/~/media/Product%20Brochures/Camera/Digital%20Video%20Cameras/LEGRIA/DV%20-%20FS406_FINAL.ashx

There's actually no problem here. Given the camcorder is SD and its sensor dimensions and it appears you are making Video DVDs you should see those bars.

Nothing seems wrong here except you may not have folk to discuss this or point out that it looks like this should and does happen.

Bob