I filmed a little test in widescreen just to see the quality difference between it and full screen on the VX...On the LCD it looks fine and during capture in a Widescreen Project in Premiere Pro 2 it looks fine, but when I import the clip into my timeline, it's not widescreen. It's displayed as 4:3 but has the black bars on the side. When I select a Standard Project, it just looks like normal 4:3 video....Any ideas?

I think the problem may lie in the fact the first five seconds I captured are in 4:3 and then it goes to widescreen. When I watch the clip in WMP from the beginning, the widescreen part is shown in 4:3 like the beginning of the video,but if I jump directly to that part, it's displayed properly in widescreen.

You need to set the project properties to widescreen.

I did, the video just has black bars on the side.

Somehow your capture isn't tagging the clips as widescreen. You'll need to change the clip properties so that the aspect ratio is 16:9.

Sorted, thanks! :D