I landed here looking for a an after the fact answer; i am already editing my first h.264 project on Premiere cs5.5 on a late 2009 dual core macbook pro 2.8ghz/8GB RAM and dual nvidia cards (have to switch manually b/w 9600M GT for better performance/9400M for better battery life) . I am currently on 9600M GT).
Premiere works almost flawlessly editing h.264 footage. it became slightly sluggish after applying video effects on multiple video layers, so i am currently rendering. Still beats my sluggish FCP performance (same laptop).
I am so used to transcoding that i wasn’t sure if editing h.264 in premiere was a wise/stupid decision, I was already doing it as mentioned but needed some assurances.
I used to edit in FCP and used to spend hours in transcoding, I am happy that’s no longer the case.
I am waiting to see the outcome and I hope the quality will not be degraded.