Shane,
Thanks for the quick response. The process, when it was small, was done this way because there was little editing or graphics added. But it was already eating up all their processors and time anyways. This time around there are small edits, transitions, and graphics. With Apple Pro Res Proxy, would all the editors need FCP 7 import and edit natively a APP Proxy file? Are there other codecs (like maybe PhotoJPEG) that might also work?