Walter:
Thanks for the reply! Per your suggestion I created a new project and tried to frame convert the one and only clip in the project but unfortunately came up with the same error.
Is is possible that the post house transfered the footage to the drive without flags? As I mentioned the processing media window gets to the 80% point every time. Would it even start the process if there were no flags? Here is a section from Panasonics documentation:
Important:
In order to ensure that your media file contains the variable frame rate
footage from the camera, make sure that you are using a capture preset with the
checkbox labeled