Wide Screen Select turned on makes it automatically switch to wide if a tv program is aired in widescreen AND the 'code' for this is in the teletext signal, so it has nothing to do with video-inputs. (as far as i understand it).
However, when a widescreen source is connected, the Avant should show widescreen by itself (it does with my old '94 Avant with a digital tv receiver) so i guess playing a widescreen, that is: 16:9, dvd should show full screen.
But i guess having a 'strange' format dvd (not 16:9) needs playing with the tv format settings.