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Thank you very much Daniel. I don't know Photo Shop Elements very well but I have it and will give it a try.
Thank yo for the follow up info.
The manual you referred me to is for IMovie 9. I've got Imovie 11. Willthe basics be the same?
I tried your solution and reduced the image size to 640x480. when I imported back into iMovie, it was still too large for the iMovie window.
Yup. I changed the resolution to 72. Still too big.
I'm scrapping the project - too frustrating.
Thanks. I already know about fit selection. It works but then you loose the Ken Burns effect. Using fit selection turns it into a power point presentation for all intents and purposes, other than having more control over how sound/music clips are used.
I may consider this, just disappointing.