Making clips of a movie but when transfer to another sequence, the image is bigger than the screen

I created another sequence and cutting out a clip and transferring it to the new sequence and the image is bigger even cutting parts off  -- it is not the image size - if I change it to 10 percent it just reduces it - but still large.  I've tried both using exisiting settings and changing the sequence settings. What do I need to do?

Thanks!