Problems in iMovie

[bobl]

I have recently returned from a holiday with a stack of Clips and Still photos which I want to make into a DVD to exhibit on the TV. I have done this before without any problem. However, although the Movie Clips import into iMovie and work fine the still Photos when added blow up to megasize so that only part of the photo is showing and that is blurred and unusable. I have tried dragging the photos directly to iMovie and also importing from iPhoto but get the same result. Please help me fix this problem. I do not understand what I have done wrong. iMovie Version 6.0.3 - iPhoto version 7.0.1 -