BOX NOT CHECKED: Adjust source media to better match project or render settings.
I'm not trying to put letter boxes on top and on bottom, I just want the footage not to be stretched.
When I change the properties settings to 1920x1040 for example it simply crops into the footage when I go to 1.85:1 Academic aspect ratio in Pan/Crop. When it's at default it leaves black space at the sides.
Can someone point out to me what may be the problem?
P.S. When I play the media in VLC it also stretches to fill out my monitor at 16:9, not the original 1.85:1 (the reason I'm thinking bad codec).