[Ian Collister] “…but it was also suggested to me that using a compressed file might cause just as much trouble as i would have to uncompress it as it was read.”
In general, that’s untrue. These codecs have a decent data rate for editing, from what I’ve seen & heard:
DV 25/50/100 (MiniDV, DVCPRO50, DVCPROHD)
Photo-JPEG (try 89-90% quality)
Motion-JPEG A/B (not MPEG)
Hardware codecs (Decklink, Matrox, Kona, Avid, etc.)
Uncompressed 8-bit
Apple Intermediate Codec (never used it)
Apple ProRes (its AE issues might be fixed)
There may be others.
By the way, don’t edit in AE. It’s a royal pain.