So Steve,
This means that if you import, you're still OK. When you edit, you're still OK (right?). However, than you have to be careful doing the Export, yes?
I exported using the "Export Movie" option under "Share" in "Large" mode, and this created a m4v file, which played fine on my mediaplayer. Quality looked fine.
However I would like to export to DVD as well (friends, family, plus it has chapters), but than the issue kicks in according to you.
Probably the safest way hence is to convert to AIC right after the input. I hope nothing is lost (colour changes? Metadata still there?) in that process.
Can't wait to see your ebook. This thread and the deinterlaced one are too long. Time for a book or a wiki! I would have to dig through this to find back how to do the conversion, and which tools to use.
Lots of kudo's to you; major patience!