I found the answer!! A guy on another FCP Board figured it out. I thoughbt I would share it here for others.
thanks – byron
—–the fix—-
Double click one squished clip, then in the Motion tab of the Viewer, check the Distort property. Reset it with the red x.
This should fix the one clip. Now Copy that clip, select all the clips in your Timeline, and Paste Attributes to the rest, with only the Distort checkbox checked.