[Andrew Dutton]

H264 CODEC DOES NOT WORK AS AN EDITING CODEC FORMAT.

Here is how I do it using FCP5.
Sony nex5n shoots .MTS files, otherwise know as AVCHD codec.
Final Cut Pro 5 does not natively edit this footage.
I use .MTS converter and convert footage to 1920×1080 Apple intermediate codec.
I also use cinema tools to conform the frame rates to whatever I shot it at, 24fps, 60fps.
After converting and conforming, I can drag and drop into my FCP5 timeline using the correct timeline setting and render settings. I don’t have to do any rendering after I drop into timeline, just edit away.
The .MTS converter cost like $49.00. Working in this manner does not slow my workflow down much at all.
I can actually convert all of my footage in .MTS converter overnight when I am sleeping. In the morning I conform all my framerates, then I start editing.

My sequence timeline is setup pretty simple:
Apple intermediate codec, 1920×1080, square pixels, 23.976 framerate, no anamorphic
44khz audio at 16 bit, two channels

Using the converter allows me to edit in a 4:2:0 color space which is equal to or greater than Avchd natively, this is why I choose Apple intermediate codec, over apple 422 or apple 4444 , because avchd does not need the additional bit depth apple offers up in prores codecs.
I have found by using this setup, I can edit effortlessly on my g5 dual 1.8 or my 2.33ghz apple MBP running the same software.
I hope you found my post helpful.
Drew Dutton
IATSE LOCAL 600 FIRST AC