Okay, I'm not sure what's going on here. I'm trying add stills into MC timeline. When I double click on the still in the bin, it fills the whole screen and distorts. I don't remember this happening before. Am I doing something dumb?
Note that those stills you imported have been converted to the frame size of the project. So if they were 5600x4000 pixels at 300DPI, once you import them into Avid, they become...say 1920x1080 72dpi. Might be fine if you just show them full screen, but if you want to do any moves on them, you need to either use Avid PAN & ZOOM...or Moving Picture (stagetools), or Sapphire Pan & Zoom...they all have you link to the original photo.
Been playing with this the last few days. Link to the photo via AMA and use FrameFlex to keyframe your move. It works similarly to the 3D Warp effect. No clunky Avid Pan & Zoom interface, no third party plugin. It just works. Of course, if you need to share sequences with an older system, it won't be possible.
Haven't tested in a sequence with a lot of stills, but I think this is where things are headed. I would not be surprised if this becomes the favored workflow. It's a lot more intuitive to use.