Why doesn't my Nikon D70 playback my pictures in fullscreen?

Any time i take a picture on my camera it shows an image about 1/4 the size of what it should be (basically takes up a corner of the picture) it doesn't cut anything out just shows a smaller picture. Then when i click the "play" button and scroll threw and click on the picture it just shows a complete zoomed in version and the only way i can see anything is by moving around the multi-selector. I also just ran an update on the firm ware to 2.0 but it didn't change much.

I don't get it. You mean you want to see the whole picture in real size? Wait for a fold-away LCD to get developed first for that to happen.

There are settings that you may want to look at in the manual so that the LCD is filled up with just one picture as you hit the preview button instead of getting thumbnails. With my camera, once you hit the zoom in during preview, I'm brought to a pre-selected level of enlargement immediately and work up or down from there. Your camera may have that setting too but then again I'm not sure. I'm not much into Nikon.

I take it that it does show other additional information about the image in the rest of the LCD then? Or is it all black?

Try pressing up and down on the multi selector when you're in that mode. That should cycle through different modes of viewing the image. You should also be able to zoom in and out using the usual buttons in most (not all) such viewing modes.