It's usually best to transcode your footage into the Apple ProRes codec. FCP7 doesn't do well handling DSLR (h.264) footage. Any dissolves or fx will have to be immediately rendered. Unless you plan on straight cuts then you'll need to get out of the h.264 codec and into something FCP likes.
You can transcode using Compressor or MPEG Streamclip. Bring that media back into FCP and you're good to go.
Ryan
http://www.studio006.com
"Some men are born mediocre, some men achieve mediocrity, and some men have mediocrity thrust upon them."
