Your Sequence Settings do not match the clips. The frame size and frame rate of the Sequence should match the majority of the video media you are working with. When starting a NEW project, when you drag the first piece of media to an empty timeline, it will adjust the Sequence Settings to match that media (it will ASK YOU before doing so).
You will typically want the Sequence to match the VIDEO clips from your camera. Any stills or other miscellaneous media being added will have to be sized then to fit that Sequence. For instance, right-click on a piece of media that is not fitting the frame and choose Set to Frame Size to make it fit better.
Another option when starting with a new project is to right-click your video clip in the Project Bin and select New Sequence from Clip. This will match the sequence to the video clip.
Think of the Sequence Settings as the foundation of your video project. If this is incorrect, things will go sideways quickly. Poor quality and other issues will pop up. In general, if for instance your video clip source is 1080p 29.97, edit in a 1080p 29.97 sequence, and then export also as 1080p 29.97 and you will get best results consistently.
When you put a still image into a Sequence and it looks zoomed in, that means the frame size (resolution) of that image is much higher than the Sequence. Like putting an 8x10 photo into a 4x6 frame. Use Set to Frame or Scale to Frame to make it fit. Set to Frame is better if you plan on using any animated zoom/pan since it retains quality from original image.
Hope this helps
Thanks
Jeff Pulera
Safe Harbor Computers