Need Help with New HDTV

recently I bought a new Insigna 26 in Hd lcd from best buy. When I set it up with a Verizon HD service, I still get a blue border on both sides of the set. and when I look from the side and top I see a blue fuzzy pic. I went back to best buy and look at there set and their screen was the whole length of the set and not 16:9. Is there some setting I could adjust or do I have to take back this set.