Make a new project and import this one into it.
See if that will fix it.
Will it Snap to previous clip?
I assume you cant see half an image?
What is your sequence setting?
Maybe this is just a GUI resolution issue that has no practical affect... but I would not want to see a "gap" like that anywhere in my sequence
I've seen this when copying media from a 29.97 sequence into a 24p sequence (or vice versa).
You'll have to go through each edit and manually correct it. Trim the clips a frame or two and you should be able to arrange things appropriately.
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Not sure if this is the issue or even what you want ...but you are working with HD source in a SD (DV) Sequence ...if theCompressor is anything to go by.
What would be a good compressor?