This explains a lot.
Here’s how I’ve been doing it, and getting away with it (or “How Not to Do it”)
Canon 7D, import files with Lexar 800 fire wire CF reader onto Media disk,
Import files into FCP7 browser,
Mark and drop in Sequence,
Find out transitions don’t work so do Opacity Ramps manually,
Kind of choppy, but Rendering out seems to work except to Quicktime (there you get some
weird green blanks once in awhile, but using Quicktime conversion h.264 seems to work.
Scratch head and say, “well, I guess they don’t have all the bugs worked out of the FCP yet”
and go shoot some more great HD footage.