Thanks for the idea Nick. I tried it (adding a background layer) but couldnt get it to work. Then I even enlarged the canvas and sized the logo down, making the new background huge. But then when I imported it, the logo still came in squeezed just smaller.
So far below is the best solution so far, given to me on the SFCutters forum by:
“Marco Ramirez
Film/Video Production & Post-Production Artist
Are you bringing in the PS file or do you need to bring a logo in just for a simple overlay?
My initial guess is FCP thinks it’s anamorphic; I would render as PNG, it’s great for logos and graphics, and it will also be much lighter to process. Make sure to turn off any unwanted background fills in your PS file before rendering, PNG will carry transparent pixels.
Hope this helps…”