It works now
I just checked again with v10.0.2.9. It is working fine for me now. It appears the "Fit to Disk" only comes up if the mp4 is above a size that would require shrinking to fit the disk. I was getting the over sized files with a MP4 of only 888 MBytes.
I can't duplicate the problem with v10.0.2.9 so I don't know if I was doing something wrong to create the problem or not. Anyway, I'm happy now.
Gary