Hi
The chequered background you see is the area in the video frame that does not contain any of the image/clip. It appears when your image/clip is either smaller than the VP frame size or, more commonly when your image/clip has a different aspect ratio to the 16:9 ratio of the VP frame.
e.g if your clip/image has a 4:3 ratio like a lot of camera images, then there will be a chequered area to each side of the clip when you preview it. It's a similar case if you have used a portrait orientated image. VP will shrink it to fit into the height of the frame leaving a space on each side. It will not "stretch" or crop it to fill from side to side......that is somethig you must do yourself..see below
Note, the chequered areas will only appear in the preview pane and will be replaced by black bars in the sequence preview window. If you have used a small overlay image or a text image, they will also be present in the thumbnails for these.
The simplest way to ensure you don't have this effect (remember, there are no chequered area is the outputed video) is to only use images and video having the 16:9 horizontal aspect ratio. They will all then fill the normal frame.
If this can't be done and you don't want the black bars, (a lot of digital cameras produce images of a different AR), the normal workaround is to apply the CROP effect to your clip/image, forcing a 16:9 AR and then altering the crop box to suit your requirements, and then clicking the "Zoom to cropped area" box.
Inevitably you will lose some of your image at top and bottom if you do this but you can move the CROP area about so it contains as much of the image as you can get in, and it will, at least fill the frame now.
You can also use the SCALE effect to stretch one (or both) of the axes of your image and so cover up the chequered area. Again, inevitably, the trade-off is that your image will now be distorted.
But..In short...If all your clips/images are 16:9 is aspect ratio at the outset there should not be any chequered areas.
Nat