It does this at EVERY resolution on EVERY mode (1:1, normal, anamorphic, etc).
Tried it on two different computers--a Geforce 8800GTS SLI running Vista, and a Radeon x1950Pro running XP. Used a DVI to HDMI cable on both computers.
On the ATI/XP machine, not as much is chopped off, but the controller seems to be scaling (text is blurry, even though it's set to 1:1).
On the nvidia/vista machine, more of the screen is cut off, but the image is perfectly sharp.
I'd try VGA, except that the controller's VGA input seems to be limited to a max res of 1600x1200.
Here are some photos of my cropped screen (running at 1920x1080, HDMI to DVI cable, 1:1 pixel mapping)

