Final Cut Express 4.0 Help. :((((

Hi guys I am having a few problems with Final Cut Express.
I have used a screen recorder (Screenflick) to record clips of my desktop with dimensions 765 x 503. They save as a .mov file and I don't compress them to avoid quality loss.
I am wondering if there is a setting in Final Cut Express 4.0 which allows you to edit clips and string them together in the dimensions of 765 x 503. At the moment, I am using DV-NTSC (720 x 480) which is the closest I can find at the moment. When I edit my clips with zoom in effects and I export the movies, there is an enormous quality loss even if I export with no compression. Any ideas to prevent this?
Also, when I add transitions between my clips they won't go larger than 0.001 seconds. The clips are recorded with 60 frames per second so there should be plenty of frames for the video transitions. Any ideas why this isn't working?
All help appreciated guys, thank you.

The inability to create transitions is because your clips do not have "handles". For a full description read this article carefully - several times if necessary:-
http://www.fcpbook.com/Effects1.html
The problem is caused because you cannot put transitions between COMPLETE clips.
You MUST cut off at least half a second from the end of each clip where it "touches" the transition.
That's HOW you do it ........ the article will explain WHY.

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