If the Video is displaying too large in the Program Monitor, it is likely that your Project's Preset does not match your footage. Can you give us the full specs. of both the source footage and the Project's Preset?
I'm afraid I can't answer Bill's question but nealeh's solution has worked. Many thanks - another problem solved - another bit of knowledge stored away for future reference.
Glad that worked for you, but do be aware that at anything other than 100% you will not be seeing in the monitor how it will truly look when you preview or add transitions and effects.
Insanity is hereditary, you get it from your children
Thanks for that - I guessed that would be the case, but it's good to have it confirmed.