Peter, I found some interesting information as I looked at various settings.
When looking at the files in the Media Browser, the Canon file type was Canon XF and the p2 file was Panasonic p2. After importing them into a project and clicking on file properties, the Canon file type was noted as XDCAM 422 while the p2 file type was p2. When creating a sequence from each clip, the Canon file sequence Edit Mode was Custom and the Preview File type was I Frame Mpeg (like an XDCAM file) while the p2 clip sequence for both Edit Mode and Preview were Panasonic p2. In both cases the frame rates and frame sizes of the sequences were matched to that of its clip.
While the p2 sequence will not display on the external monitor, a p2 clip will play out to the display if it’s cut as the second clip into the XDCAM sequence. I do see that above the p2 clip is a red bar, although playback is smooth.
What’s your thoughts?