I didn’t shoot the footage. I’m just taking a class over at FXPHD in color grading and this is the footage for one of the classes.
I’ve actually been using AE to color grade using Colorista II, but I just wanted to bring it into Vegas, and that’s when I discovered how it appears in the Preview window.
I tried changing the PAR in Vegas Project Settings to 1.4545 and that actually made it more scrunched!
Here are my settings within the Project Settings. Does everything look okay?

And here’s how it appears in the Preview window:
