DVCPRO HD in FCP

What's the deal with FCP5 not working in 1280x720? I can bring in the footage in but the timeline preferences say 960x720. If I change the sequence prefs to 1280x720, my footage needs to be rendered. Also, the view windows show the footage all streched. When I use a second monitor to view the final output, it looks correct?

Is final cut pro reducing the frame size from 1280x720 to 960x720 for real-time performance? If so, when I render out a final movie, is it going to be 1280x720?

I hate to sound like it's amateur hour over here, but it's my first time working in HD.
 
Don't change the preset.

The DVCPRO-HD codec uses 960x720. If you change away from that it will require rendering. The presets are set accurately.
 
I am experirncing the same problem as heartajack. When the render out a TGA sequence from the timeline, the images are all 960x720. I could not even find a way to set image dimensions of my choice at the time of rendering. Any workarounds?
 
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