Is there anyway to modify the aspect ratio or make it full screen 16:9

It currently looks like its in 640x480 but in a 16:9 widescreen mode

http://i149.photobucket.com/albums/s71/SymbianFreak/IMG_0539.jpg

edit: all is ok its acting naturally its just the game plays like that

Try to edit the file "ScummVM.ini" in the game directory. There is one line:
aspect_ratio=true

Try changing this to
aspect_ratio=false

But I'm not sure if this option applies to the 7th guest. As far as I know, ScummVM just outputs a 640x480 screen.

The actual scaling is done by your graphics card. You will have to set the correct scaling option in your driver software, which is of course different from vendor to vendor.

I can confirm on my end that whether "aspect_ratio" is set to "true" or "false" appears to make no difference; the game appears stretched out at fullscreen either way.

There is no general solution to this, since every PC configuration is different. Most importantly, Intel integrated graphics, Nvidia and AMD all handle this a little differently in their drivers. But it also depends if you are on a laptop with built-in display or an external monitor.

On Laptops, most graphics card drivers offer switching between the following scaling settings for the built-in laptop display:
-Center Image
-Scale Full Screen
-Maintain Aspect Ratio

If these options do not appear in your graphics settings, try reducing your desktop resolution to something lower than native screen resolution, the scaling options should now appear and should also be applied if you start the game now. If you are lucky the scaling option will be remembered even when you change you desktop resolution back to native and start the game then (but don't hold your breath).

If you do not have a Laptop and/or use an external Monitor, then most drivers will not offer you the scaling options at all. The Monitor is responsible for scaling whatever it receives, and hopefully you can set scaling options on the monitor.

I know that the latest Nvidia drivers offer the option to do the scaling on the graphics card and then deliver a predefined resolution to the monitor, but I'm not sure if there is a general solution for Intel and AMD.

I can confirm, that the game is in no way stretched out.
it is meant to be played that way.
in game there are hotspots ontop and beneath the main view window.
main menue and "ghost" (review ghost scene) hotspots!
the intro is fine the way it is.