I am a beginner and experimenting with a project with 128x96 size

When i add a small gif image (20x20) on top, there are a few problems:
1. the image gets stetched to fill the whole frame
2. The transparent area of the GIF does not show through (Premier can't recognise transparent pixels of GIFs??)
3. How do i place the small GIF image in any location within the frame?

I use Adobe Premier 6.5


Thanks for helping.

Create a new tittle, then insert the image as a logo.

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