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Since you are showing the source tab, it means your source video does not match the frame size of your sequence settings.
How do I check/change that?
Right click on the source video clip in the project panel and look at Info, or its Properties. What is the frame size, PAR, fps?
When you make a new sequence; make it match.
Thank you!!!! :) I never had to worry about that before. Took me a few minutes to figure it out.