OK, here is what happens.
It doesn't seem to matter what my source video is but if I trim the clip in the source window using "I" and "O" then drop that clip on the time line the animated Pan and Zoom does not work.
If I take the same clip and drop it on the time open it up in the Pan and Zoom window and do the adjustments I want. Then close the pan and zoom window and adjust the in and out points of the clip by dragging the start and end of the clip all is OK. I can even open it back up in the Pan and Zoom window and make further adjustments.
Also if I drop the clip directly on the timeline and drag the In and Out points to where I wan them and then open up the Pan and Zoom window it doesn't work.
So to sum it up, I can only adjust Pan and Zoom on an untrimmed clip then adjust my trim points after. If I trim the clip first it will not work.