Your post and it’s title are confusing.
Import your clip from the hard drive into APP.
Drop the clip onto the “make new sequence that matches” icon in the bottom of the project.
Now, your footage matches your sequence.
Edit.
Set in and out points if you need to.
Export to AME, Choose the DVD Preset, mpeg2DVD if going to DVD
Choose .h264 codec if going to web, mp4, YouTube data rates of 5 MB/s.
Compressing for deliver is always going to make a smaller file then raw footage, but it does not mean if has to look bad. You have to do it correctly. Tell us what delivery you are trying to make.
Chris