What kind of camcorder is this video from and how did you get the video into your computer?
Which exact project preset did you select?
The challenge -- at least from the specs I found online -- is that this camcorder shoots in MP4 but is apparently NOT an AVCHD camcorder, so it may not work with the program's standard presets.
You might have better luck using it with one of the Flip or DSLR presets in version 9. Can't guarantee, but it might work.
Have you tried it with the 1440x1080 AVCHD preset? Despite the cam's specs, it apparently uses anamorphic pixels, so that could force it to "unsquish".
Otherwise, you can try right-clicking on each clip in your Project panel and selecting Interpret Footage. Seeing if you can reshape the video that way.
But, unfortunately, this will not likely be a happy marriage between this camcorder and this program. It may be best to edit this footage with the software that came bundled with the camcorder.