Open your FSX.cfg with notepad. Scroll down until you find [Display]. Add the following line below it:
WideViewAspect=True

That should make it look better (not squished).

To locate FSX.cfg, press the WINDOWS key+R (the windows key is the key between CTRL and ALT on the left side of the keyboard) and paste this %APPDATA%\Microsoft\FSX\fsx.cfg into the box, press OK. This will find and open FSX.cfg for you.

Mark