Preparing Premiere Pro CS5 for editing an iPhone 4 video?

[Elliot B.]

Upon opening Premiere Pro CS5, I create a new Project and keep the default settings, which are:

Video Display Format: Timecode

Audio Display Format: Audio Samples

Capture Format: DV

Video Rendering and Playback: Mercury Playback Engine Software Only (this can not be changed)

Then I create a new Sequence and choose Custom > iPhone 4 as the preset (I didn't create this preset), which is set to:

General

Editing mode: Desktop

Timebase: 24.00fps

Video Settings

Frame size: 1280h 720v (1.4587)

Frame rate: 24.00 frames/second

Pixel Aspect Ratio: D1/DV PAL Widescreen 16:9 (1.4587)

Fields: No Fields (Progressive Scan)

Now let's say I drag an iPhone 4 video into this project and add it to the timeline and straight away go to File > Export > Media... then press Export, I get a weird shaped video.

This is how it ends up: http://i54.tinypic.com/5x8w04.jpg

Instead of like this: http://i53.tinypic.com/rsh4ky.jpg

These are the settings of the iPhone 4 video as displayed by KMPlayer (all the iPhone 4 videos are pretty much the same from what I can gather):

General

Format : MPEG-4

Format profile : QuickTime

Codec ID : qt

File size : 47.9 MiB

Duration : 37s 291ms

Overall bit rate : 10.8 Mbps

Writing application : 4.3

Writing library : Apple QuickTime

Model : iPhone 4

?xyz : +52.7095-002.0033/

Make : Apple

com.apple.quicktime.make : Apple

com.apple.quicktime.software : 4.3

com.apple.quicktime.model : iPhone 4

Video #1

Format : AVC

Format/Info : Advanced Video Codec

Format profile : Baseline@L3.1

Format settings, CABAC : No

Format settings, ReFrames : 1 frame

Codec ID : avc1

Codec ID/Info : Advanced Video Coding

Duration : 37s 270ms

Bit rate mode : Variable

Bit rate : 10.7 Mbps

Width : 1 280 pixels

Height : 720 pixels

Display aspect ratio : 16:9

Frame rate mode : Variable

Frame rate : 23.976 fps

Minimum frame rate : 23.077 fps

Maximum frame rate : 25.000 fps

Resolution : 24 bits

Colorimetry : 4:2:0

Scan type : Progressive

Bits/(Pixel*Frame) : 0.485

Stream size : 47.6 MiB (99%)

Title : Core Media Video

colour_primaries : BT.709-5, BT.1361, IEC 61966-2-4, SMPTE RP177

transfer_characteristics : BT.709-5, BT.1361

matrix_coefficients : BT.709-5, BT.1361, IEC 61966-2-4 709, SMPTE RP177

Any ideas what I am doing wrong?