I have an .flv file that is in the wide-screen ratio, but after importing the clip into iMovie HD, it has been distorted to a 4:3 (basically, where it looks like the people are squashed thin and tall). I tried the video fx option of "letterbox" but that just added the black bars without reshaping the image.

I'm hoping I missed a simple step. And please let me know if this topic has already been addressed, because I couldn't find it in a search.