"However, after I import, the Codecs box in the info window of the inspector still says "H.264"."
The Inspector displays the original codec not the optimized codec. Select a clip in the timeline and use the reveal in finder function and you'll see it's pointing to ProRes QuickTime files in the Hogh Quality folder.
If FCPX will import your video, using ClipWrap is a waste of time.
You can import your video as AVCHD and elect to transcode them at any time by right clicking on the clip in the Event browser and selecting Transcode Media from the contextual menu, or by choosing to have them transcoded when imported — it is entirely up to you.
FCPX will Transcode your media into Optimized Media (ProRes 422) and/or Proxy Media (ProRes 422 Proxy and resized to 1/4 the original size) for use in the storyline *if it has them* or it will use the *original* media if you elected *not* to transcode upon importing. [You need to select Use Original or Optimized or Proxy media in Preferences > Playback pane to tell FCPX which you prefer to be used.]
Selecting a clip and going to the Info inspector will still show the *original* properties of the original clips.
In general, you will probably want to transcode your original AVCHD or other highly compressed media into one or both types of transcoded media in order to fascilitate editing especially if effects are applied.
Awesome....thanks to both of you guys. You both answered my question so.
I can't believe I spent 4 hours today trying to figure this out when it was so simple. I guess I did learn a few things in the process though so it wasn't a complete loss.
Thought I was going to have follow up questions but I guess not.