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Actually it DOES need rendering Try the Render All Work Area option. Even the most powerful computer will need to render an AE dynamically linked clip. Dont pay to much attention to the color of the render bars when using Premiere. If it doesnt play back correctly...render it. You of course can always render in AE and export a movie for use in PrP if you choose.
Neither PrP or AE account for transitions when using dynamic link.
When I play my timeline, the stabilized clip plays with much jerking. The bar above the timeline is yellow, so there is nothing to render. How can I get my composition to play smoothly in Premiere? So far, the best I can figure is to render an .avi file from the composition, and then import that into Premiere and replace the composition on the timeline. But I suspect it's not supposed to be that involved. Can anyone help me?
Warp Stabilizer is a very processor-intensive effect; it's made worse since Premiere Pro lies to you when you Dynamic Link to an AE comp, and says that it's a yellow bar segment. Most of the time, you'll never get realtime playback of a DL comp--AE is not a realtime application, so it's hopelessly optimistic on Pr's part to say that a DL comp doesn't need rendering.
The solution is fairly simple: mark the comp's region in your Pr sequence with the Work Area Bar (WAB) and go to Sequence > Render Entire Work Area. This will forcibly render everything, including yellow bar segments (though segments without any bar are obviously skipped). You'll have a preview file that, presumably, will play smoothly in Pr then.
If you've decided that the stabilization is good and works in your sequence, you may still want to render out to an AVI from AE, or you could even do this from your Pr sequence. That way, you can replace the DL comp with a "real" clip and you're more or less guaranteed reliable playback then.
Many of us have requested a "Render and Replace" for AE DL comps; if you feel the same way, you should do that too: Adobe Feature Request/Bug Report Form
On the same subject, if I have a clip on my Premiere timeline with transitions on either ends, and I replace the clip with an After Effects composition, the composition does not account for the extra frames needed for the transition. Is this a bug or am I doing something wrong?
Now, that's just The Way It Is. After I replace a clip/clips with a comp, I always immediately Undo the action. The comp is still created in AE, but you get the original clips back in your sequence. Then, I typically just trim out the ends of the clip once it's in an AE comp, and then replace the original clip with the new the DL comp in your Pr sequence to account for the time offset. Another thing you can do is match frame to your original clip, lay it on a track above the original, and trim it to match the duration of the original instance plus the transition duration. Then, you can do your Replace command on that, and later edit it into your sequence.
Ultimately, these are workarounds, so making a request for some more logic in this regard would be a good idea.
There you go jdmack...now you have the short AND the long version.
My mistake was choosing "Render Effects in Work Area" rather than "Render Entire Work Area." The former does nothing, the latter works fine.
As far as the items to submit to the Feature Request/Bug Report - I wanted to get an answer from the forum first before making my submission. Now I will.
Like Colin said, the lack of compensation for transitions is the just way it is. It will stay that way unless a lot of folks put in their requests to change that feature.
Thanks for joining the crusade