Android App using only half the screen

When running an Android Application, I found that it was only using half the screen as in the screenshot here.

I had this problem when the android:minSdkVersion was set to 3 in the AndroidManifest.xml

For example the following caused the issue:

<uses-sdk android:minSdkVersion="3" />

When I set it to something higher than 3, it used the whole screen. For example:

<uses-sdk android:minSdkVersion="8" />