Margin problems with InBooklet

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I am experiencing a problem when printing a document via InBooklet. The margins all look okay in the setup, 0.5 in all around, and the document size of 5.5 x 8.5 looks good too. However, the actual printed output, when printed as a 2-up saddle stitch, is a 1.0 in top margin and 1.0 in Left margin. So the gutter is off, as well as text/graphics are cut off on the right and bottom margins.

This particular document was just converted from a PageMaker 7 file – are there inherent problems with the conversion? The margin settings in the InDesign document are the same as the original PageMaker file.

Any ideas?

THANKS!!! TT