Yes, I didn't think it was but I double checked the video clip settings and it is:
Vid rate 29.97 1920x1080 Data Rate 5.6MB audio 48 Khz with H.264 as compression
Sequence preset is DV NTSC 48 Khz
I also have a video converting software that can change that to 720x480 with a video encoder "Xvid (or H.264)".......
Put gently, this is all wrong.
1. Your material is not in an FCP native format.
2. Your sequence settings must match the source material (that should be in an FCP native format)
To fix #1, convert the material to an editing codec - ProRes422 or ProRes422 LT (better) - using either Compressor or MpegStreamclip.
To fix #2, create a new sequence and drop in one clip of the ProRes material. When FCP asks you if you want to have sequence match the material, select yes.
Now drop in your stuff and edit away. Once complete, export a self contained file with "current settings" selected. When you have that, you can convert it to any other format you may desire.