Hey, thanks for the quick replies.
Okay, so H264 is a no go for editing. I tried bringing in another video file. The settings are as follows:
Vid Rate: 29.97 fps
Frame Size: 1620 x 1080
Compressor: HDV 1080i60
Data Rate: 3.2mb/sec
Pixel Aspect: Square
Sequence Settings:
Frame Size: 1620 x 1080
Aspect Ratio: Custom (3:2)
Pixel Aspect Ratio: Square
Field Dominance: None
Editing Timebase: 29.97
Compressor: HDV 1080i60
… and it is still requiring me to render if I move or scale the clip.