Can't work out how to get timeline footage to play full size in the Program Window...

I'm using Premiere Pro CS3. The footage I import plays fine in the Source Window, but is at a more reduced, "boxed-in" size in the Program Window when I put it onto the timeline.
I know that i can stretch the image to fit the frame, but I'm worried about losing quality if I do that.. The Zoom Level is set to "Fit", so I'm not completely sure what else to do... Any help would be much appreciated...

Hi Bill, thanks for the welcome! 
The Frame Size of my original Source Footage is 720 X 404
I've set my Project Preset to DV-PAL - Widescreen 48kHZ, which upon inspection, is 720 X 576, so I'm guessing that's what the problem is..?
I've tried going into Custom Settings to change the Frame Size, but the boxes are "greyed out", not allowing me to change them..
Any ideas on how to best move forward? Cheers.

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