I am considering moving from NTL to Homechoice, mainly because of NTL's inability to provide broadband internet to West London. I read a while ago that Homechoice did not transmit widescreen signals - is this still the case, as I can't stand stretchyvision...?

Nope - Widescreen works fine although there are only a few channels (BBC, ITV, Ch4, five) That broadcast in widescreen on HomeChoice.

I presume you mean that any channel that normally broadcasts in widescreen (on Sky, Cable, Freeview) is also widescreen on HC?
Also, what's the deal with the 'Wireless Installation Upgrade' option for £125 on the HC website? If i wanted a wireless connection would it not simply be a case of buying a router (one without a modem) and connecting it all up myself? This would surely be a lot less than £125...?

Yes. It is cheaper to buy it yourself and install it. The only advantage of getting it from them is that they will set it up and support it.

When the new HomeChoice service was first launched, around a year ago, there was no widescreen support. As others have confirmed, this was fixed.

However, to my knowledge none of the VOD content is widescreen - only the live broadcast channels. All of the movies are 4:3 pan and scan.

Some of the VOD is broadcast with a black border and small true widescreen picture in the middle of the screen which can be stretched.