Creation of Projects in 4:3 Ratio Truncates Edges of Video

I recently used a Miglia DV converter to pull some video that is in 4:3 aspect ratio into iMovie 8. The default setting in iMovie preferences and in the project specifics was 16:9, so I reset them to 4:3. I have since noticed that when the project is played, the horizontal edges of the video have been trimmed away - for exapmple, in the intro to one of the projects, the word 'Battlefield' displays as 'attlefiel'. In the clips, there is no truncation, but the video displays in 16:9 and so it appears stretched.
How do I ensure that(a) the original aspect ration is imported, and (b) that I avoid trucated edges described above?

I installed iMovie 6 on the MacBook and cannot seem to get it to avoid stretching images. I then reverted to using iMovie 6 on the G4 Mini and again, no problems. I recorded both 3:4 and widescreen shows and all cam out as desired. I have not as of yet tried installing iMovie 8 on the Mini, but I feel like the laptop is the root cause, since it's the only item that differs when iMovie 6 is used.

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