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I hope Panasonic keeps the same OIS system in all their future cameras. It's entertaining.
Squeezed is just the weird name panny picked (instead of wide) for widescreen. It is native 16:9.
Just drop it on a 16:9 timeline and you will be fine.
Have you read that manual yet? Get Barry's book too, it will answer all of these questions for you in the first 100 pages of frequently asked questions section
Later,
Jason
Has anyone ever had a real fault related to the "rattling noise" surface after time?
I finally figured out why there was never a stickie posted about this - you guys are having too much fun with the newbs.