So I was able to get rid of the blackbar from the video itself... but this does not get rid of it when it is being played on the actual game.
Reason being simple. The video is a wide screen format and the game runs at a 4:3 format.
As of now there are 3 options.
Skew (squeeze) the video into a 4:3 format (will be slightly distorted)
Crop out the wide screen part (cuts out some graphics)
and the hardest Crop out the wide screen but use a pan effect that shifts left and right depending on the movie.
Or... wait till I have (or someone else) has an ingenious solution.
On another note, I've found a way to compress the death video better. Will be up on the front soon.