Pardon the basic question, but this video is one layer on a fullscreen 1280x720 video. This 1280x125 “image processed” portion will be overlayed on the bottom of the frame.
So what resolution and aspect ratio would I use for the project?
Thanks - how can I make the area outside the original video size (above and below) transparent, so that I can overlay this 125px tall video on a separate track and it does not cover my entire screen on a fullscreen track? In other words, I have a video that is 1280x720 (track1) and I want to overlay the 1280x125 video at the bottom of track1. When I process the png images (1280x125), the output is 1280x720 and therefore it covers all of track 1.
As @shotcut posted a link to how to use Video Mode, you need to make a custom video mode.
You can create a custom video mode for 1280x126 (or 1280x124), but not for 1280x125 as per your source video/images are set to.
If you set your video mode for 1280x126 with your source size, this is what you get.
You can use Size, Position, Rotate with distort mode to attempt to get your source to fit.
If you didn’t want to have this custom size and just wanted to overlay your images on a project with a video mode of 1280x720, then stick with the 720p Video Mode preset.
By default your image will be shifted to the left because of the specific source resolution.
These are the settings I used to center on the bottom.