but, if Kona & Xena are the same, then is there a possibility that the boards will handle the avi files like nobody's bizness. cuz i think that article was for ppl using FCP as a stand alone piece of editing software. Correct me if im wrong.
Will the boards drive the footage?
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The boards do not drive the footage. (they help with HDV and DVCProHD codecs). But they are capture/record and external monitoring cards. So the codec needs to be want FCP wants, which is QT. NOTE: QT and AVI are just the wrappers around a codec. Apple software wants things in a QT wrapper.
This really should be simpler than even what that article states. First if you have FCP or Express you have QT Pro so need to buy that. You also have Compressor with FCP (don't know about Express) so all you need to do is to convert the clips to 1280x720 ProRes and you will be golden. You can probably just convert the footage to a QT MJepg, just keep it the same frame size.