What do you mean by 'letterbox scale'?
I noticed you're trying to make the background scroll by doubling the size of the background at program start and then having repositioned once it gets off the screen. This is a little inefficient in my opinion.
Just make a layer for the background, load the background image as a sprite, and then set that sprite to wrap. Have the sprite move some number of pixels on every tick, set the parallax to the background layer to something like 100, 30 and that should do it (you may have to make a few tweaks).