Hi Steve,
I think this is a TW4 bug!
I remember having exactly the same problem as you with portrait format stills. I was in a hurry to meet customer deadlines and rather than investigate the problem, just went to photoshop, made a canvas the same size as my landscape stills, set the background colour to my preference then copied in the upright still. TW then just considered it as a normal landscape format.
Maybe not an ideal solution, but will get you up and running quickly.
Cheers,
Willie
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