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Dec 24, 2015 7:59 AM in response to juliafromtahoe cityby Meg The Dog,Prior to ingesting the H.264 file, convert it to ProRes.
You can do this with Compressor or with MPEG Streamclip (free)
http://www.squared5.com/svideo/mpeg-streamclip-mac.html
FCP 7 does not support working with H.264 files directly.
MtD