Samsung SGH-T809 / SGH-D820

I have no problem with the quality of the shots, but what I cannot get past is that what you see in the view finder when framing the shot is not what ends up in the actual picture. So, lets say you frame a person's face in the view finder and snap the pic, what you actually end up with is the person's face and a whole lot of surrounding background that you didn't want.

I have had camera phones before, but I don't remember seeing this effect. Can anyone explain?
My wife has a different Samsung camera phone and it does the same thing.