PLEASE HELP........import 720p to FCP HD, but it is small in the screen.

So i import 720p footage to fcp. The specs of the footage are 1280 x 720, 24 fps.
compressor - photo - jpeg, pixel aspect: square.
I set up the project.
frame size 1280 vs 720, hdtv720p (16:9), Pixel aspect square
Quicktime video settings : h.264.
When the footage is in the viewer it is does not fill up the screen(black box around it). When I export the video is small with the large box around it.
What am I doing wrong?

http://support.apple.com/kb/TS1591
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