You know how we were having issues with the NeoGeo games on the Virtual Console? Well, someone on these fine internets figured out a fix, although it isn't as ideal as a system update from Nintendo would be. Still, it's not that difficult of a process and allows us to play our games. That's what's most important, after all.
Here's the fix:
Boot up your NeoGeo VC game of choice
When it loads with the squished screen, hit the Home button on your Wiimote
Head into the Operations Guide
Once inside, plug your nunchuk controller into your Wiimote, then simultaneously press A+Z+1
You should hear a sound, signaling that the Wii has been set to Interlace mode
Now, once done, all of your NeoGeo games should run fine, meaning you won't have to do this for every game.