Video Edit Magic can accept files of any width and height in the Timeline. During Make Movie, you can decide to choose different video dimension.
By default, Video Edit Magic creates a project using the same width and height as the first file you add to the Timeline. You can also specify a width and height of your choice when creating a new project. If you accept the default, your project will be 930 x 950 pixels assuming that this is the width and height of the first image you add to the Timeline.
Since the project's dimension is same as the dimension of your image files, there will be no resizing involved. After completing your project, you can Make Movie in any dimension of your choice. Depending on the dimension you choose in Make Movie, Video Edit Magic will automatically resize all your images.