[Salvatore Interlandi] "I do have a G4 PPC - sorry for the confusion. "
That would mean XDCAM Transfer Tool only.
Shot Put Express is inexpensive and has very good copy function. I mention this because you should copy and back up the original BPAV folders.
[Salvatore Interlandi] "How do I set sequence renders to Pro Res? Do I do that thru the sequence setting window? "
Sequences Setting, Render Control Tab, change Codec from Same as Sequence to Apple Pro Res.
[Salvatore Interlandi] "What is AJA IO? "
See this. It'll do realtime conversion to Pro Res using its own DSP.
http://library.creativecow.net/articles/adcock_gary/AJAIOHD.php
[Salvatore Interlandi] "Transferring to Pro Res was in hopes of gaining color space and getting around the long gop."
For editing, changing the sequence codec render setting should be enough. All your filters and compositing will be done in Pro Res "space." I'm not sure how Color handles this though. Magic Bullet seems to work. I know Cinema Tools requires one to get out of Long GOP so it may depend on what you need to do.
[Salvatore Interlandi] "Do you suggest shooting HQ 1080 24 P?"
It depends on your target. Shooting in 24P requires a good understanding of how movement responds to temporal motion. Some people like the look. I generally shoot 30p unless I'm shooting sports in which case it's either 1080i60 or 720p60. 1080p24 would be good if you're going to Blu-ray for example. It really depends on the look you want and where your final product is headed.