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The black (or transparent?) area is part of the video, so you have to crop that area. Using the crop effect will allow you to get rid of it, but if you select "Motion" you will still see that blue bounding box.
The solution is to nest the video (right click > Nest), and change the width of the newly created sequence to match the middle area of the clip.
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How is the size of the bounding box determined? Is there a way to determine this to be able to have te correct sequence settings?
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It's taken from your image's (or clip) original dimensions. If it's a raster image, crop it in Photoshop before importing into PPro, if it's a vector image adjust the artboard size in Illustrator to your content before importing into PPro.
If it's a clip do the nesting as I said in the previous post.
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How do you know what sequence settings to use? Do you just guess and then modify from there? Even changing some of the sequence settings randomly, the blue bounding box is still not matching the outline of the slides. Is that what the nesting is supposed to do? I seem to get able to get rid of the black areas but the blue bounding box is still larger than the slides. Are you not able to get the blue bounding box to match the slides dimensions at all? Sorry- just not following completely. Thank you for your help so far!