Let's start at the beginning, just to make sure that everything is in order.
Can you tell us the full specs. of your Source Files, then your Project Preset (remember, these should match 100%), and finally your desired Export/Share format/CODEC?
There is likely a mis-match in there somewhere.
How do I find out the specs of the source files?
It doesn't matter what the output shape is but I'd like it 326 wide, FLV
I work on a Mac
Right now the Project Settings are
Frame size: 720 x 480
Pixel aspect ratio: D1/DV NTSC Widescreen 16:9
They are greyed out - I can't change them.
Ok I opened some of the source files in VLC and it says they are 720 x 480 MPEG-1/2 video
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Is this widescreen or 4:3 video?
Your project settings are incorrect. You should start a new project and use the settings for Hard Disk Camcorder.
And, when you export/share your file, you should NOT try to customize the output size. Miscalculating the output size rather than using the preset size often causes black bars around your video.
What type of file are you trying to output it as? For what purpose?
I think that FLV is the desired output. It does allow for Frame Size changes, but, as you point out, one must get the Aspect Ratio correct, or problems will arise.