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You can set the duration automatically in the Preferences dialog box. (But it has to be done before you import the images; changing the duration in the preferences will not affect images that have already been imported.)
OR... you can select your clips in the project panel, before they've been placed in any sequence, and change their duration there.
OR if a clip is already in the timeline, you can place your cursor over the end or start of the clip and click and drag to lengthen/decrease the duration.
Thanks for the reply. I've tried the last step you suggested. I'm able to shorten the duration of the clip. However, I'm unable to lengthen the clip, especially if the clip abuts another clip.
Use the ripple edit tool to increase the length of clips whilst at the same time pushing adjacent clips along the timeline.
Here's a handy shortcut for you Andrew: If you hold down the Ctrl key on your keyboard, this will turn the regular trim tool into the Ripple Edit Tool David J mentions.