Rendering Footage that is already digitized???

I am editing a video project that was shot on a Panasonic HPX-170 in 720P30. For some reason, when I take some of the clips and drop them into the timeline, FCP is still requiring the clips to be rendered. It makes no sense to me. I'm assuming I must have a setting wrong in my a/v settings but not sure. Can someone tell me what I am doing wrong? Thanks!
 
Could be that your sequence settings don't match your media. That's the first thing to check.
 
Frame Size on the Sequence settings is 960 x 720. The aspect ratio is HD (960 x 720) (16:9). Editing timebase is 29.97 Render frame rate is 100% of Sequence Editing Timebase. Resolution is 100% of Sequence frame size. Codec is set at 'same as sequence Codec'.
 
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