Zoom Problem

I am trying to help my friend create his first slideshow with fotomagico and we are having a problem with the zoom and I hope it’s something really simple we are overlooking. We are choosing to create a HD720p slideshow and when we drag the images (hi-res full size 300ppi jpegs) in they all have a zoom of around 800%-1200% just to fill the stage which means they are really blurry when playing the slideshow and when reduced to 100% they are tiny on the stage which doesn’t make sense to me because they are very large images where when they are at 100% they should more than fill the stage.

Is it because the files are too big? I thought Fotomagico could automatically deal with any file size and it was best to use hi-res for the best quality slideshow…

Any help to fix this will be much appreciated.