HDV and 16x9 Help!

I am so confused. Why is it that when I import 16x9 DV footage into FCP, the canvas applies letterboxing and squeezes the image improperly? I can't seem to get anything to display in the correct aspect ratio on the canvas or on the TV. It looks fine in the veiwer window. What am I missing? The sequence is set to display anamorphic, yet it squeezes the letter boxing and the video at the same time. I don't get it.
 
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