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download mpegstreamclip and convert it to Prores like boss said. Only takes a few minutes and you will be able to edit jitter free.
I don't even know how to use Imovie. Unless you have a VERY fast machine that is set up properly editing h.264 files smoothly is pretty much not gonna happen.
Yeah you want to convert to ProRes. You can do this in QT player or Compressor too btw. And then you're all set. Canon is supposed to be releasing a Log and Transfer plug-in for FCP to streamline this workflow a bit.
Noah
That's sort of strange, as I'm able to log and transfer my GH-1, AVCHD footage direct from the SD (or backup copy on a hard disk), and have it transcode to, in my case, Apple Intermediate Codec, as I have FC Express.
I then use JES to do the 3:2 pulldown, and edit in Premiere, because FC Express doesn't really understand 24p... and Premiere on my machine, doesn't play AVCHD remotely 'well' at all...
Its funny how Imovie 6 handles it just fine. I don't get it...
Um thanks but we're not talking about the GH-1 on Premiere here. We're talking about the Canon 7D on FCP. Every camera and NLE has a different workflow. Panasonic has a long history with FCP and has made their plugins while Canon is brand new to video so doesn't yet have a plugin for the 7D.
Noah
I would hardly say that Canon is 'new to video', perhaps it's their SLR group didn't talk to the video group.