Downloaded it end of January.

EDIT:

I did a reinstall of both BG 1 and 2, installed the Fixpack but did not install BGT. I used the config to test video settings and could already tell that the video was off (The 3 concentric squares were off center to the left). This ONLY happens if I use GPU scaling instead of display but display scaling doesn't actually work/fit resolution to full screen with aspect ratio selected.

HOWEVER, I just tried an unmodded BG1 and GPU scaling does not offset the game display. So what's the deal? Why is the BG2 engine not playing nice with my scaling?

It actually has nothing to do with the widescreen mod or any mods for that matter. The game engine itself seems to offset everything to the left. This does not occur in BG1 only in BG2 (or BGT).

Perhaps someone who has a knowledge of the differences in the engines of the two games would have an idea.

Very strange issue, that it only effects BG2. I would try different / older graphics card drivers next. Sometimes the newer drivers have glitches with older games.

Although as olnorton said, you should be able to use display scaling at 1280x720 - a standard res that widescreen monitors should scale correctly themselves. The black bars on the sides that you mentioned are normal, only the main game world gets to be widescreen.

Have you got the game installed in C:\ProgramFiles(x86).................?
If you downloaded the game in January, then it will be setup_baldurs_gate_2_2.0.0.12 .exe & it will include & install ddrawfix.
What is the first line in you BG2 WeiDU.log?

Everything I am referencing is the main game world. I know that the menus never fill the screen. However, there are black bars at 720p if I use display scaling. Even on the desktop if I do not use GPU scaling the display aspect ratio scaling will have black bars on the top and bottom (slight) at 720p. Odd to me because it's a 16:9 resolution.

Your saying that if you set
Perform scaling on: Display
Scaling Mode: Full-Screen
Resolution: 1280 x 720

On your desktop, you don't get full screen?

Correct. There are black bars on the sides (despite the preview showing that it should show it as a full screen. If, however, I go in to the monitor settings and change Aspect Ratio from "Fit" to "Full" it will stretch it out. If I do this an select Scale from Display- Aspect Ratio- then it will have black bars on the top and bottom.

Overall, the quality drops off as well when I scale from Display as opposed to GPU. The only way to have no letterboxing whatsoever while maintaining the correct aspect ratio is to use GPU scaling.

Well if you put display & full screen like I run it, you will be able to play 1280 X 720 without black bars.
If you think you get better quality some other way, then go for it.

Because that pulls the pictures out of shape.

Sorry, I misunderstood you. What I mean is... if I use Display Scaling and Full Screen I still have blackbars UNLESS I change my MONITOR setting from Fit to Full. If I do that, it pulls the picture out of shape as you just mentioned. This applies to scaling in game as well as my desktop **when using display scaling**.

Basically, display scaling fails to provide a letterbox-free game without adjusting monitor settings and stretching the image. However, GPU scaling allows full-screen (and aspect ratio) to fill the screen without stretching, but in BG2 engine it shifts the image off to the left.

Maybe I should try GPU scaling with some older drivers?

I decided to experiment with some older games and scaling.

Half Life:

When I use 'software' rendering the game behaves in the exact same manner as BG2. With display scaling, I have letterboxing even in 16:9 resolutions (whether I use aspect ratio or full screen).... with GPU scaling the image fills the screen but a good bit hangs off the left side of the screen.

When I use OpenGL it doesn't matter whether I use display or GPU scaling, either way the image fits perfectly to the screen with no issues. What I don't get is that in my Throne of Bhaal config I have 3D accel enabled and the driver (only one available) says Default OpenGL Driver. So if I'm using OpenGL it should be working perfectly... the only thing I can think of is that somehow it's still using software?

This is curious because you mentioned earlier something about a DDFIX which is not included in the install.