I would think transcoding to ProRes would probably be your best bet, as far is it being a more easily editable format, but since the bandwidth requirements of that codec are higher than h.264 you’ll need a storage setup that will be able to handle it well. Two hard drives in Raid-0, good, Three hard drives, even better. You can use Apple’s disk utility to raid them together.
I’m getting ahead of myself, how do you have your scratch disk setup? Also, is your H.264 video 720p or 1080? I find a lot of those H.264 cams record to 720p 30fps which can be of wonky with FCP. First off, there’s no easy setups for that, only 720 59.94 and 720 23.976. You can manually switch your sequences to 720p 29.97, but I don’t know if you’ll have much RT capability switching it around, since it’s not a format that FCP is expecting, and as Gary has mentioned before, it’s not a SMPTE recognized format, so you’ll probably have to a bit of conversion at the end depending on if you plan to go out to Tape or DVD.
Richard Sanchez
North Hollywood, CA
“We are the facilitators of our own creative evolution.” – Bill Hicks