Help I should also add that I noticed that compared to VEGAS the FCP project is not doing 16:9 properly. I believe the image is being cropped on the left and right sides. The test or control project on Vegas looks fine. It was shot on A1 HD 1080i/60

Are you using the correct Easy Setup? Your Easy Setup should match your camera output.

I don't think the problem is actually in FCP. It problabaly is somewhere between going to Compressor to DVD Pro Studio. I did noy use easy setup. But I used the "Official Larry Jordon" settings from his FCP tutorial. "Current settings" is the setting I used which is supposed to be the right one because it uses the "video sequence" as a reference...right?