In some cases a 16:9 DivX file can be incorrectly displayed as 4:3 in the preview window and in the project format settings after the clip has been added to the timeline.
If the video has not yet been added to the timeline, double-click on the file thumbnail in the album. The file will then be correctly detected as 16:9 format. Now the clip can be added to the timeline.
If the video has already been added to the timeline, the project is likely set to 4:3 format already. To resolve the problem, delete the clip from the project. Next, double-click on the file thumbnail in the album. The file will then be correctly detected as 16:9 format. Finally, re-add the clip the project.
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