Imovie 11: When moving clips from event to project, the top of the video clip is cut off.

I'm working with a new project. When I add clips from an event to the project window, the top of the video clip is cut off.  Quite a bit of it is cut off.  It happens on every clip.  The aspect ratio is correct and I've set the video to fit in frame.  How can I fix this?  I would really appreciate any help.

You may have stabilization turned on in the project. On one of the clips, click on the small gear icon at the start of the clip and select Clip Adjustments. In the Inspector that opens, uncheck the box "Smooth Clip Motion" against Stabilization. If this fixes it for you, do the same for the other clips.
Also, it's a good idea to turn off certain preferences in iMovie>Preferences (an iMovie menu item). In the Browser tab uncheck the boxes for both "Automatically stabilize clips that have been analyzed" and "Apply rolling shutter correction for clips that have been analyzed". See this picture:
The stabilization process causes a zoomed in effect on the video, as it has to "average" the pixels in order to smooth any shaky motion. You therefore lose a certain amount of the picture, depending on the extent of stabilization applied. Here's what iMovie Help states (in part) about this process:
"iMovie stabilizes video by analyzing the camera motion in the video and then moving the picture the opposite way to steady it onscreen. In this process, iMovie zooms in on the picture slightly. The amount of unstable motion in the clip determines how much zooming is necessary.
Zooming in crops out some of the picture, but you can fine-tune the level of stabilization to strike the right balance between keeping the video steady and retaining as much of the picture as possible."
John

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