Yes, your sequence is set to Standard Definition 720x480, so you have been down converting all your clips to the lower resolution during your edit. Is this your intention?
If not and you want to resize your sequence contents to HD 1080 without re-editing, follow these instructions:
Create a new, empty sequence (File > New > Sequence). Accept any sequence settings that are offered. A new (empty) timeline will appear next to the one you are working on.
Drag one of your camera source clips into the empty sequence you just created, you will be prompted to match the sequence settings to the properties of the clip, do so.
Now your clip should appear full screen and in the correct aspect ratio in your sequence.
Delete that clip you used to set the correct sequence settings from the sequence and return to the sequence you have been working on. Click on anyone of the clips in it and then type Command (Control) + A to select all the clips. Type Command (Control) + C to copy them.
Switch back to your newly created sequence and click anywhere in it. Type Command (Control) + V to paste the clips there.
If they do not look correct in the new sequence, click on any one of the clips to select it. Type Command (Control) + A to select all the clips. Right click on any one of the selected video clips and from the drop down menu choose Remove Attributes.
When the Remove Attributes pane opens, remove the motion attributes.
MtD