Well i guess he mentioned an image editor since I said this was happening with images I import also.
What i mean by timeline not matching video size: The sequence settings are set for 720×480 video. Now if I record a portion of my screen with Camtasia and import that video, no matter what I do it ends up blurry even though the source is crisp. I read that this is because the video i’m importing isnt the exact size as the sequence settings. (I guess I expected Premiere to do a better job scaling the imported video from Camtasia). So that is what I meant by that.