From the original post description you may have a DV timeline (sequence) and the clips may have been captured in letterbox 4:3. This would drop the clip into a Widescreen Sequence and appear to have a small image in the middle of a black border.
If you select the clip in the timeline and then select the Motion Propertie in the Effect Control Panel, the clips edges will show up in the Program Monitor. Which will indicate if the clip is bound smaller than the sequence or the letterboxing has occured during capture.
If my guess is correct you will need to recapture and be sure to set the video output to squeeze so the capture window shows a clean full frame widescreen image and not a letterboxed (bars on top/bottom). If this is just the way is was shot, then you will need to edit in 4:3 (Standard) DV and live with the letterboxing or crop it out at the export stage. Cropping will lose quality.
– Jon Barrie 🙂
Jon Barrie
aJBprods
http://www.jonbarrie.net
http://www.suiteskills.com