[MacDV] Squeezed image when Importing mp4 into iMovie

[Dennis Fazio]

I would like to import and edit an mp4 movie in iMovie. I used Handbrake to 
extract a widescreen movie and create the mp4 file. However when imported 
into iMovie, I get a fullscreen image that is horizontally squeezed. I can 
find no controls either in handbrake or iMovie that will result in the proper 
letterboxed image.

Is there a step or setting I am missing?
-- 
Dennis Fazio
dfz at mac.com