Thank you very much indeed for your help. It worked very well and has gone a long way to resolving the problem. …. but!
When I clicked the Options button next to the format setting, I got the window titled “Movie Settings”
In this window were listed several items, one of which was the current size of the movie. I found that these figures would be different each time I clicked through to this window.
It listed the dimensions of the movie variously as 1278 x 720; 1278×787 and various other sizes.
If I adjusted the custom size settings to match these settings I got perfect circles for all the different sizes of images in the movie.
I got a book Final Cut Pro 5 For Mac OSX and this lead me to control click the little sequence1 icon in the Browser window where I set a dimension (1400×1050, I think I set) I then went back throuhg your procedure and set 1400×1050 there and everything seems to be fine and consistent.
Being very underconfident in this respect I will probably be back for more assistance and advice (reassurance) in due course.
Thank you again, very much for your help.
Avery Little …. puzzled