With Adobe Premiere I read that you don't have to transcode your footage to edit, but is it BETTER to? In final cut people say that it is best to transcode your footage from h.264 to apple pro res in order to get higher quality footage. Is the same true with Premiere? Is it better to change your footage to a different codec before editing? FYI I use a Canon 7D.
Transcoding will not result in better quality than working native.
Do the below to match your sequence and your video and you should be good to go
See 2nd post for picture of NEW ITEM process http://forums.adobe.com/message/3776153
-and a FAQ on sequence setting http://forums.adobe.com/message/3804341
The tutorial list in message #3 http://forums.adobe.com/message/2276578 may also help