> Is this because FCP shrinks the image so that the whole image is displayed with
> the correct aspect ratio?
No, it's because anamorphic 16:9 footage was meant to be displayed in a horizontally stretched way to fit a wider screen (such as an HD television). When you put a clip that wasn't shot that way into a Sequence intended for that display, FCP will apply a Distort setting so that when the normal clip is stretched, proportions will be restored to how the clip was before the Distort.
> If that's the case, I should be able to rescale the clip so that it spans the entire
> width of the canvas, which should be 720, without any pixilation because the clip
> is 720. Is this correct?
No. A 720x480 3:2 clip does not fill a anamorphic 16:9 DV frame...unless you want the black bars on the sides when the clip is played back on a wide screen. You will have to blow it up around 35 per cent (usually the scale value is 133 per cent) to fill the wider frame. There is quality loss, and of course you lose the top and bottom of the frame (but you can reframe vertically). Anamorphic 16:9 DV and 3:2 DV are not interchangeable. Making one fit the other always involves a blowup.
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