Image bleeding through travel matte

Hello to all,

I have video playing in a travel matte. In FCP 7 the effect works fine however in FCPX the video is bleeding through. Please see the image in my Dropbox folder --> [www.dropbox.com]

Any suggestions how to set this up, what settings to change so the video in the circle is not bleeding outside the circle?

As always, thanks in advance.
Lisha

FCPX 10.3.1
OS 10.11.6