Overscan occurs on your high definition LCD, plasma and projection TVs when the video image is enlarged slightly and the outer 3% is cropped off. Engadget HD has an extremely thorough explanation of overscan, but we’ll boil down the important points here for you.
Overscan is a remnant of CRT TV days when images needed to be enlarged slightly to ensure the quality of the image at the center of the screen. There is no real excuse for continuing the practice today other than, “that’s how it’s always been done.”

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