Steps in editing RED footage in FCP and Color

Hello, I have another question about editing RED footage in Final Cut and putting the footage in Color.

After some research and talking to a few people that worked in RED, I figured out a workflow, hopefully. Here's a list of steps that I got from a few people, but still I have to try them out. Just wanted to post here to see what everyone thinks.

1. Drag _M files from RED and edit them on the timeline.
2. Once done editing, send to Color.
3. In Color, adjust levels (I'm still learning the program) once done send to Final Cut.
4. In Final Cut, render out video.
5. Export video as Final Cut Movie (Quicktime movie).

Just wondering if that's a good workflow and if I'm missing any steps. Also wondering is it all right to work in the _M files?

I did try the Log and Transfer, but it took awhile to load up a 1 min. clip and once it was done it made it a brand new clip which takes up space on the hard. (I have tons of space though, so that's not that much of a program, but I know RED files are big.)

From talking to people, they said It can still work by working with the _M files, but since they are references files is there another step I have to do before or after I send to Color? If anyone can help that would be great.

Thanks,
Chris

P.S. I'm working on a Quad-Core MAC Pro with 6 GB of RAM and working with FCP 6.0.5 and Color 1.0.4.