1280x720 FCP Sequence settings dont match footage.

Can anyone tell me why I get the extra width of a sequence here?
I have a clip that is 1920 x 1080 and I want to place that in a sequence that is 1280 x 720 so I dont use the auto setting by dragging the first clip to the timeline. Instead I set the sequence manualy then drag the clip in.
Then the sequence is to wide.
The only way to work around it appears to be to create a clip that is 1280x720 and drag that in for the auto setting to take effect. Seems a bit messy to me.
Can anyone help with this?

I would drag a 1280 x 720 clip into the timeline and tell FCP to match the sequence settings to the clip settings. Now you'll have a 1280 x 720 sequence. You can then trash the 1280 x 720 clip from the timeline and put your 1080 clips in.

--ken