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Color correction can only be done on the original material, not on proxies, at least if you want good results. This applies to all platforms (PC/MAC/other) and all NLE's.
Which means I have to render to a more CPU friendly codec while keeping it high-quality and use this as my master because I cannot natively use the original MOV files from the 5D2 if I want to edit in real-time.
Apple's final cut uses ProRes in this way i believe.
First word of advise; If you want to shoot movies, get a video camera.
I believe the 5D2 records video to h.264 inside a Qt wrapper. Its likely unfriendly format to edit which would be why your FCP friends use ProRes to convert it to an edit friendly format. Its not the resolution that causes it to be challenging to edit; its the encoding used to compress it.
Im not sure how well it would work natively in Pr as i dont know the details of how the camera is encoding. My guess is "not too good".
There have been several threads in the Premiere Pro and Premiere Elements forums on the Canon 5D II. A search might yield some info. Seems that one user had found a way to do a good job with the editing, but I do not know details. Try both forums for the articles.