Dear Jeff,
your screenshot looks similar to that in a recent message https://www.jiscmail.ac.uk/cgi-bin/webadmin?A2=spm;79d22bc2.1408 , so maybe there's a bug somewhere?
Unfortunately I can't help, but at least I don't think it's due to bad coregistration between structure and functional data or structure and template as stated in that thread, as your image should be distorted/incorrectly stretched globally then.
Hope someone else can provide some solution,
Helmut
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