To keep the original width and height (dimension) of your videos and images, you must create project with the same dimension as the files you are going to add on the Timeline. By default, Video Edit Magic uses the dimension of the first file you add to the timeline. Images generally do not have the same dimension. Hence, you may get a project with a higher project dimension than the dimension of the files you later add to the timeline.

If the video's dimension is different than the project dimension then Video Edit Magic will stretch the video to the project's dimension. To keep the original dimension of the file you are adding to the timeline, you can use the 'Stretch Mode' feature available from the Edit menu.

When you Make Movie, you also have to make sure that you create a movie with a dimension closest to your project dimension. When making movie in AVI, you can let Video Edit Magic select the project dimension by clicking 'Auto Select'. Other make movie options have more specific dimension requirement.

Please refer to Video Edit Magic's help file for more information on Projects, Stretch Mode and Make Movie. You can also read the help file online at:
http://www.deskshare.com/vem-help/index.aspx