Look under the Edit menu and post what is listed as the Project Settings on the General page. ("Left as defaults" doesn't tell us what we need to know.)
It definitely looks as though your project settings do not match your video specs. So what are your video specs? You'll find these in the settings for your camera app on your iPhone.
Do you have Quicktime 7 installed on your computer? Particularly if you are editing MOV video (and, if you're editing video from an iPhone, you are), Quicktime 7 provides necessary components.
QuickTime 7.6 for Windows (If you are on a Mac, don't worry about it. You've got Quicktime.)
If you are planning to upload your video to YouTube or watch it on your computer, you definitely do NOT want to output it as a DVD video! You should go to Publish & Share/Computer and select AVCHD video, then use the preset to YouTube HD video.
Here are my project settings.
My video specs: It says Record Video 1080p at 30 fps.
Did I have QuickTime loaded? I don't know. I'm downloading it right now. I am not on a Mac.
Your last suggestion about publishing with AVCHD I was definitely doing wrong. Thank you for that.
Let me know what else I need to change. I don't know what/how/where to match up that 1080p on my phone to PE settings.
I really appreciate it. (Also, I have your book, but for PE 11 I think.)
Things seem to be in pretty good order, Cindy.
Just make sure you use the AVCHD/YouTubeHD output. This output will produce a progressive scan frame. The interlacing in your original output is what was causing most of your issues.