I just saw the screenshot (wheeee, SPIKE LOL). I never had that happen to me when I used Premiere but I have heard from people who had the same problem. I think it's got to do with the project settings and the input settings. What are the project settings you are using and what are the clip settings? I think I remember that if the clips you input are smaller than your project size, Premiere won't blow them up to fit the project....