My program display window (and not the source window) shows a zoomed-in version of the original frame. I tried to change playback & paused resolution, display mode and changed different sequence settings but it's still zoomed.
Check your Sequence Settings. If you are putting a 1080 sized clip on a 720 timeline it will show up as zoomed in. You can correct the clip once it is in the timeline by clicking on it in the timeline, then go to Effect Controls, the tab in the upper left of the Source window, click on the triangle next to fx Motion, there you can scale the image back down to fit your sequence settings.
Thank you, it worked!! Question: I only have one clip in the sequence. Will I have to do this with every clip - once placed in the sequence, click on it to scale it down? Or can I have a sequence setting that is correct that will eliminate this problem when I am putting clips in? Thanks again.
Create a new blank sequence, then drop in one of your clips. It will ask if you want to change the sequence settings to match the clip, YES. That way you should not have to resize every clip you put in.