Thanks, this workaround posted by kelly_hanson at forums.adobe.com is the best way around this I guess 🙂
It’s not ideal, but we’ve been using the process below to make it work. It adds a couple extra steps, but as of now, it’s the fastest way we’ve found to get around the issue.
In After Effects:
Render any comps smaller than 32×32 as an MOV. .mov files will render in sizes smaller than 32×32 without adding the black bars at the top & bottom
Drag the rendered .mov files into Photoshop. Set yourself up an action to export the files back out of Photoshop as an uncompressed avi. Give it a function key (F3 or something for a tiny bit of added speed – especially if you are doing a LOT of files like we do) and it’ll export the file, with the original file name but in .avi format.
Again, it’s not ideal – but that’s how we’ve been getting around it.