h.264 and prores proxy question
My raw video from my camera is mp4 (h.264). I understand that h.264 is not good to edit with, so I have a few options. I use a macbook pro for editing so I have been toying around with prores proxy for editing and it makes a difference on RT playback and rendering while editing, so that's good. When I get ready to output my movie after editing, I relink my project back to the original h.264 source files and that seems to work fine.
I'm wondering if that's not the right workflow though. Should I transcode the h.264 into prores HQ or LT and then ALSO to proxy, edit with proxy and then relink my project back to the HQ or LT files to output? Or is linking back to my source h.264 files and outputing the right way to go?
Since the original files must be in the best possible quality that I'm going to get (since they're my original clips), I assume that relinking to them right before output is the way to go but I really don't know much about codecs to know if I'm missing something.
Thanks in advance for the advice.
MacBook Pro, Mac OS X (10.6.2), FCP 7