I need help setting my FCP 7 for Codec H.264, Linear PCM

Click on your sequence to select it in the FCP Browser, go to the menu File > Export > Using Quicktime Conversion . . . and when the pane opens set the Format to QuickTime using the Format: drop down menu at the bottom of the pane and then click on Options.

In the Settings Pane choose H.264 for the video and Linear PCM for the audio, click OK and then export the file.

MtD

FCP can export that codec, but really cannot edit it. Gotta convert it to ProRes before editing.

Agree with Shane, all of my AVC H.264 videos are encoded to ProRes 422 HQ before importing to FCP.