Actually, it is legit and in Widescreen
To my joy, I went ahead and bought the version I mentioned above. It truly is in Widescreen and an official release from Disney Latino. I don't know how to post a pic, but I have a scanned in the jpg of the back if anyone wants to see it.
Almost all of the Disney releases here in Chile are both Region 1 and 4, so I wasn't suspicious of that. I have both the US Region 1 and the new disc I bought right here in front of me. The packaging is very similar (of course one is in Spanish). The discs are very similar with these differences:
1) during the opening menu, Kermit just starts pointing and grunting, but doesn't say anything in English (in other words, it's the backhalf of the R1 version)
2) at the opening of the Humbugs doc, there is no english title, just blank space while Gonzo and Rizzo talk.
3) The song "When Love is Gone" is not in this version of the film.
4) you have the option of choosing english, spanish or portueguese when the disc first loads.
5) the cover is the same but without the red border and it says "Una Navidad con Los Muppets" (A Christmas w/ the Muppets).
Everything else is the same. 5.1 Audio, commentary, Christmas around the world, gag reel. And the transfer looks very good to my eyes. Better than the full screen version. You have the option of using spanish or port. subtitles during the extras and also during the commentary.
So again. I own over 200 DVDs and can tell a bootleg from an official release and this is the real deal. It seems that this is a rare find and I am just happy to have it in glorious widescreen. I did see another copy for sale and would be willing to get it for a collector. (parkersinchile@mac.com)