Rendering Q

I just got FCP 5 and I'm trying to edit some DV footage. The problem is, then I play my project, I get the "unrendered" screen. However if I hold down the arrow key, it plays perfectly (just slightly in slow motion). I have a dual G5, so I know it must be a setting that I have wrong. I've looked in the manual and the settings, and can't figure out what I'm doing wrong. I just want to be able to edit in real-time without having to render everything.
 
make sure you seq settings and your footage match.

open a new seq with the proper setting and put the footage in there. Consider the old seq. time line dead.

-rook
 
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