OK... it worked! Got rid of the bars...
This is just a quick fix till the authors do their thing.
Now Im sure there are easier ways of doing this but this is what I did:
1. Do what Pure said in his post by renaming "eq2ui_mainhud_letterboxframe.xml" to "eq2ui_mainhud_letterboxframe_old.xml"
2. Then copy the new one from the "Default" folder and paste in your current UI folder, open the new one and change the following:
<?xml version="1.0" encoding="utf-8"?>
<Page AbsorbsInput="false" alwaysonbottom="true"
Enabled="false" GetsInput="false"
Name="LetterboxFrame" PackLocation="left,top"
PackLocationProp="0000/0001,0000/0001"
PackSize="absolute,absolute"
PackSizeProp="0000/0001,0000/0001"
<----You want to change the values to -256/0001,-256/0001
Again, this is just a temp fix that worked for me and I didn't have to move windows all over the place.