10 years later.. Quick and easy.
1) upload a known good horizontal video and add it to your time line. – This video will set the dimensions.
2) now add the vertical video to your timeline.
3) delete the horizontal video from the timeline.
4) Rotate and scale your vertical video.
– You will no longer see the 2 horizontal lines on the side. The video will cover the whole image space. Keep AdobePremiere it’s a good program.