How can I make videos play fullscreen on my tv using a vga-out from my macbook?

I am running a mini-dvi to vga cable from my macbook to my 32” flat panel tv and using VLC player to play videos but I cannot figure out how to make it full screen on the television without those stupid gray bars at the top and bottom.

Everytime i try to put it in full screen to get rid of the bars it puts it in full screen mode on the computer moniter!