the black borders at top and bottom of screen you'r refering to is due to 50Hz display mode.
it's something different from what we'r tlaking about.
My tv model is a Thomson 32WR23EG, and I paid 590Euros for it. Excellent TV, particularly for the price.
As for myself, I'v only ever used Jap consoles with Jap and US games.
That is to say 60Hz console, so I never had those black borders in any case
And on my tv the tv mode with the Saturn is not cinerama
I explain:
When i set screen mode to "Auto" and I power my Saturn ON, screen switches to 16/9 full screen and picture looks great
In this configuration i cannot go back to 4/3 or to one of the different zoom modes usually available using the Right and Left buttons of the remote
I have to go back in the Preferences Menu of the TV to be able to put 4/3 mode.
When I put something else then "Auto" as screen mode, the picture still displays in a full screen 16/9 mode when I power the Sat ON, but then I can change tv mode using those R and L buttons.
And when I put picture to Cinerama mode, the picture is deformed I stretches above the display area of the screen.
So i don't get a Cinerama mode, but a true full screen 16/9 mode, probably because I use 60Hz console
That explains, I guess, why your Pal games on Pal 50Hz Saturn look like the Cinerama mode of the TV but in fact it comes from the crappy-never-full-screen-50Hz-mode of Pal consoles...
Try a 60Hz Saturn and you'l see (you can modify yours, it's quite easy)