I have iMovie 8.0.6 and an iPhone 4S.  I took hours of videos on vacation (Australia and New Zealand) and want to make a movie.  I've imported the first batch into iMovie and started the project.  I just realized that I shot both horizontally and vertical

I have iMovie 8.0.6 and an iPhone 4S.  I took hours of videos on vacation (Australia and New Zealand) and want to make a movie.  I've imported the first batch into iMovie and started the project.  I just realized that I shot both horizontally and vertically and when I preview (on full-screen) what I've combined, first it's wide-screen, then it's tall, narrow with wide black sides. 
The film looks choppy, no flow, since it alternates horizontally and vertically.
I can import the vertical clips two ways:  "Full-Original Size", or "Large 960x540."  But the vertical clips have very short, fat people.
This didn't happen with my Flip HD; the movies are smooth and terrific.  My heart is breaking.....please, how can I make the videos match?

Yes, I'd like to use all the video I shot, put it together with music, titles, etc. and make it consistant.  when it goes from full screen to this vertical, narrow clip, it's very awkward.....and it's so narrow, it's hard to see what I'm looking at; my eyes don't make the adjustment quickly.

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