I keep hearing that the FX1 can record 4:3 SD video, but I've never done that so I can't confirm it. As far as playing the tape is concerned, I would think the FX1 would have to do so as recorded.
Yeah, someone here also told me their FX1 would put the 4:3 safety bars on the screen. I thought this was a Z1 feature only, but they assured me you could do it with their FX1. But I've searched and searched, and yet to find that feature on my FX1. I'm pretty sure they were full of sh*t, and just an FX1 fanboy.
As far as I know, the FX1 does NOT record 4:3 DV, and does NOT include 4:3 safety area bars on the screen.
BTW, Andrew, if you play back a 4:3 DV tape in the FX1, it plays back in 4:3 on the LCD fine, even LP tapes, with the black bars on the side of the LCD.