I've been having a problem for a while in VideoStudio Ultimate X8 where any images that I put in the overlay track of a video end up stretched and distorted. I've had the problem with both .jpg and .png images. It seems to only be images that cause the problem - other video clips as overlays are fine.
The images will look normal when they're selected, but they end up stretched when I select another clip on the timeline or select "project" rather than "clip" (see below) and they come out stretched in the final video after rendering.
Example -
Selected:

Not selected:

I have all the current updates listed on the VideoStudio Pro website's update page installed.
I use the following properties to render:
Please help!MPEG-4 Files
24 bits, 1920 x 1080, 30 fps
Frame-based
H.264 High Profile Video: 15000 Kbps
48000 Hz, 16 Bit, Stereo
MPEG AAC Audio: 256 Kbps
