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Well, you SHOULD be converting it to ProRes, which is 10-bit. And edting in a ProRes timeline...which is 10-bit. You SHOULD NOT be editing the H.264 files that the camera produces...
I have a workflow tutorial on this: http://library.creativecow.net/ross_shane/tapeless-workflow_fcp-7/1
Is there a big differenece in render time?