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Hi Mizkreant -
Sounds like (maybe) a screen capture video, recorded at your screen resolution???
Yes, it's captured gameplay footage.
With the clip in the timeline, have you applied any stretch to it via Set Clip Attributes > Set Aspect Ratio?
No, I haven't. Should I?
I can confirm what you found with the snapshot resolution. 1152x720 video in timeline. Snapshot = 1920x1080 - BUT that has nothing to do with why Magic Motion defaults to a crop size less than full screen.
That's very strange behavior indeed.
In fact, that suggestion has been put many times (i.e. that the default first keyframe for user defined magic motion is set to full screen/maximum zoom)... for the exact reasons you describe: You seem to have to select the whole frame manually, which is next to impossible to do accurately. The result is that the beginning and end of the Magic Motion zoom do not match the rest of the clip.
They should do that and/or have a button to reset to full frame. This news is disappointing. I'm evaluating a competing product at the same time that doesn't have this problem.
I want to thank everyone who replied for their help.