First you need to do is to open up the HD video file of Canon HV20 and then you can set the project properties. So go to file, import, media and open up the video file. Now drag it to the timeline and go to file, properties, click on the file folder called "match media settings" and open the same video file which you just opened. Now click on apply and then ok. But now video proportion is not fine. To fix it go to option, preferences, click on video tab and check the box which says "simulate device aspect ratio" and click on apply and you are done.
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