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What does to this message mean and what am to do? I created a new project and I get the same message.
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What version of Premiere Elements are you using and how are you setting up the project? Where is the video coming from and what are its specifications? Basically, if you are shooting a 1080p video, the project needs to match at 1080p.
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It means the project settings need to be the same as the clip.
But if you have a non-standard resolution clip, it's a no-go.