So basically, disregard all the other things to try (and put them all back if you tried already), and just right click fusion, select properties, go compatability and tick the box for "disable full screen optimisations" and it will work
Incidentally, I needed to set the full screen resolution in fusion to 1080p for it to display in correct ratio (4:3). When it was set to 640×480 it always ran stretched to wide-screen. I dont know why.