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Good news. This works beautifully, at least it does with my Canon 7D footage (H.264). I recently did a 2-cam shoot that lasted hours. I discovered afterward that one was set to 30, the other to 24. I was sweating it out until I got the footage from both cams on a 29.97 sequence and had not one issue.
Yep. It works fine. It takes some extra computational power, but Premiere Pro CS5.5 added the ability for the CUDA processing to accelerate this. See this page for details.
In general, you should set your sequence up to match your primary footage type or output type, and then you can throw other kinds of media into the sequence without a problem.
Just saw this post (2 years later). I have been gettting different feedback on this--this is the first post I have seen where it seems not to be a problem. I have 50, 29.97 and 25 fps footage. All of it is motion; am I going to get skipping or odd bits? Is there a recommended export frame rate for situations like this?
It doesn't work for me in CS6. I have a 24 fps sequence with some 29.97 footage -- all of which plays back by dropping every other frame and duplicating the remaining ones. So it looks very jittery.
There are limitations to what will look good, even if PP can technically do it.
For example, you won't get good motion from 30 fps in anything but a 30 or 60 fps sequence. Meaning you can't add your 29.97 footage to a 24p sequence. The math just doesn't work out.
You can go the other way, though. PP will add the necessary pulldown to 24p footage in a 29.97 sequence.