— After a few hectic hours, I found a work around (or fix?).
Somehow, AE was not interpreting the source file footage correctly even though all embedded info and settings seem normal. Just to check, I brought the source video back into FCP and it required rendering(?). Tried several sequence settings and could not get the source footage to read without rendering. So…I rendered and spit out another version. Looked exactly like the first, same settings, embedded info, PAR, etc.. But when I brought this newly rendered version back into AE, it was crisp and clear. Replaced the footage in AE and I’m back on track with my edit.
Looking at the embedded info in both my original source and re-rendered source, they are exactly the same. But the one I spit back out of FCP is being interpreted in AE correctly. Perhaps the original source file (which was given to me by the director) was rendered with some weird setting. Never trust the specs…