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FCE missing dialog asking if clip and seq settings match

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Trying to get started on FCE Academic. Editing HD 720 clips. But when I drag the first clip from viewer to canvas I do NOT get the dialog box I think I'm supposed to get, asking if the sequence settings should match the clip settings, and I think they do not. Rendering a 45 sec clip takes several minutes on a fast IMac. If I stop there and export as QT 16x9, the movie ends up stretched, way wide, 16x6 or so. Help needed. Thanks.

Steve
 

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