Currently Being ModeratedFeb 9, 2013 2:11 PM (in response to johnreynolds123)
From another post, I did find something that was helpful
You can set the aspect ratio in FILE/PROJECT PROPERTIES.
You can also set the default cropping action there
The setting is "Initial Video Placement" which needs to be set to "Fit in Frame". The default is CROP.
However, what really fixed my issue is that for some reason the default "Maximum Zoom" level in inspector was set to 150%! Why! lol, after I set it to 100% it worked.