I'm not talking about B5 in specific, but DVDs as a whole.
Making sure the DVD player is set up for a 16x9 TV.
Setting the DVD specific setting on the TV so that it is in standard format (not stretched)
TONS of color settings on my TV that are specific for digital pictures and DVD sources.
Took a while to get things to where they look right, and my settings for watching DVDs are different than for watching Satellite TV and for watching VCR tapes, etc...
Also some DVDs have a deal where you can set your color/sharpness/black levels for optimum viewing... I think Phantom Menace has that... or you could go one better and rent (or buy) "Video Essentials". I did that on mine and it made my picture a LOT better... It's like $50 which is why I recommend renting it if you can find it. Netflix has it.