We have to recommend (in particular because Apple is being pretty vocal about it) that you base your content area on a 320 point system. Because iPads are more square and most phones are more rectangular (most are 16:9 today) and many Android tablets being somewhere in between, making your width 320 and your height 480 will be your best starting point.
How to defeat the black bars from letterbox can be done in one of two ways. Both require backgrounds that are bigger than the screen you’re running on. Let’s think about a Vertical app for this example. An iPad needs more space on the sides so your background needs to be bigger than the 320 points (the math works out to 360). Then for the 16:9 phones, they need more than 480 points of height (the math works out to 570 points). What is this points you ask? Well today’s screens are clearly not 320x480 pixels, they are some scale factor bigger.
Going with Apple devices, those screens are now 2x the number of pixels and 3x the number of pixels. The Retina iPad is usually considered 4x the number of pixels. By using points, we stress the idea that the content area is not a pixel measurement but a relative area.
So if you make your backgrounds 360x570 and either use the config.lua presented here: or you use the standard 320 and 480 values and use display.acutalContentHeight and display.actualContentHeight to get the bottom right corner, and display.screenOriginX and display.screenOriginY to get the top left corner, then you can position your items where you want. In the second idea, somethings may be positioned at negative x, y coordinates. Others might be positioned outside of the 320 and 480 values, but that’s why you use the calls I mentioned. The blog listed in the first one will guarantee that the top, left is 0, 0 and that bottom, right is display.contentHeight, display.contentWidth. You do have to think a little differently about positioning.
Then as long as your dynamic size factors deal with @2x and @4x assets, and you build your assets for the @4x size and then size them down to the @2x size and then the base size you should be good to go.
Rob