All,
Thank you for your quick responses!!
The one that worked the best was changing the pixel aspect ratio.
Peter Cave wrote:The source clips may need to have the pixel aspect ratio set in Clip Attributes.
1. I tried: "Center Crop, No Resizing". Even when deleting the footage from DR and restarting, the clip looked the same;
2. Changing the "Scaling" to "Stretch" in the "Retime and Scaling" did change the footage but in the wrong direction (more warped)! I was able to get the "Open FX" -> "Transform" as a work around though.
3. Right clicking the clip and choosing Clip Attributes -> Pixel Aspect Ratio was very successful at making the footage look normal. It looks like the following Pixel Aspect Ratios gave me good results with slight variations: 1.25, DVCPRO HD, PAL 16:9, NTSC 16:9
All the pixel aspect ratios had slight variations. Does anyone know which Pixel Aspect Ratio is the best, or most correct?