I am using Sony Vegas Pro 8, Win XP

I have an MOV file I'm trying to open in Vegas to convert to another format. When I select the MOV file in the explorer it tells me the file is 720x486, although Quicktime tells me the video is 853x480 and when I drop it in the timeline the preview does look vertically stretched, so it's converting it to 4:3 I guess.

I've tried changing the project properties. I tried changing the video dimensions and the aspect ratio, but it does really effect the real video, it just changes to box the video is in. It still stays squished (for lack of a better term).

Thanks for any help in advance.