I need a video to be 1920 x 1080 for half of the video, and 1280 x 962 for the other half, it cannot have black bars for the other half, is this possible in Movie Studio 16.
It isn't possible in anything. Those 2 don't even have the same aspect ratio, and you can't just switch resolutions in the middle of a video file. You could only fill the area of the screen that takes up 1280x962, but that leaves black bars.
Project Properties allows for one image size (e.g. 1920x1080) for the entire project - it cannot be changed mid-project to another image size.
Media with different image sizes can still be added to the main project but will be rendered at the main project's image size. But you've got another difficulty in that 1920x1080 is 16:9 aspect ratio whereas 1280x962 is 4:3. There are usually 4 choices about how to deal with this:
4:3 video in a 16:9 project will result in black bars on the L and R of the frame; but ...
a common trick is to copy that 4:3 video to a lower track on the timeline, in pan/crop for the media on that lower track, change the preset from 'default' to '16:9 Widescreen aspect ratio' which will increase the video to fill the width of the 16:9 aspect ratio, and then add blur to the image on the lower track and perhaps also reduce the opacity. This process results in the 4:3 image being fully displayed but instead of black bars, the L and R areas of the video is repeated on the videos outside but is softened by the blur etc; or ...
add the 4:3 video to the timeline and change the pan/crop preset to '16:9 Widescreen aspect ratio'. The 4:3 video will then fill the width of the 16:9 frame but the top and bottom of the 4:3 image will be chopped off. Pan/crop can be used to best frame the image vertically; or ...
While pan/crop is in its default preset, disable the 'lock aspect ratio' icon in the far left vertical task bar of pan/crop, and then change the preset to '16:9 Widescreen aspect ratio'. This will retain the original height of the 4:3 image but will stretch the 4:3 image horizontally to fill the width of the 16:9 frame. Whether the audience will want to watch a horizontally stretched video is a big consideration though.
It would be possible in BluRay format using two files in DVD Architect, but 1280x962 is noncompliant. 1280x720 with some other stipulations should be OK.