Right click on it and set it for "Scale to Frame Size" or click on it and go up to the Effect Controls panel and use the Motion effect's Scale parameter to size it down.
Your images are probably using a LOT larger frame than the video sized frame of the Sequence.
If you want to create a sequence for just images, drop one of the images on the "New Item" button in the Project panel. But you might be better off using video sized frames if you are going to put this stuff on the web.
1 person found this helpful
For future reference, you can go to Preferences and check the box for Scale to Frame, and then images will automatically scale to fill the project frame size. This does NOT affect assets already imported, only works going forward. I just leave that checked always, since I still have the option to right-click clips in the timeline and manually change per clip if desired.
As Steven mentioned, you may want to resize the stills if they are super huge - could bog down the system if left as is and using a lot of them. The resize can be easily automated with a PhotoShop action, or free software such as IrFanView.
Safe Harbor Computers