I did a quick test today and managed to playback DV, 8bit Uncompressed (actually was old Cinewave 8bit clips), PhotoJPEG 50% and Animation codec clips in the same timeline on my Kona2 running on OSX 10.3.9 with 1.1.1 driver and FCP5. I applied a color corrector on the PhotoJPEG and DV clips and it played back smoothly.
But when I overlayed a LiveType animation (which is in Animation format with alpha), it choked on playback when I placed it over a 8bit Uncompressed clip. Well, at least it played…rather than having to render it first like before. Also when I applied a dissolve between the DV and Uncompressed clip, it played back ok.
My G5 is a dual 2.5Ghz with 2GB RAM with the X800XT card. Maybe with dual 2.7Ghz I can play the LiveType clip smoother.
I think this feature is possible with the Dynamic RT Extreme in FCP5. So all we need now is faster G5s.
-chrispy