Often the performance of these types of features varies a bit depending on certain elements.
What model of camcorder is your video coming from and what resolution and format is it? Is your project set up to match these specs? (If so, you will not see a red line above your clips when you first add them to your project.)
What version of the program are you using?
What operating system are you working on? Have you ensured you have the latest version of Quicktime from Apple and the latest video graphics drivers from the nVidia or ATI site?
My camcorder is a canon hf m41. I'm recording at the MXP 24mbs setting, frame rate pf30. The project setting is ntsc avchd full hd 1080 i 30.
My computer is a dell xps 420, Intel core 2 quad cpu q6600 @2.4 gh. 3 gb memory and a radeon hd 2600 graphics card. I don't see a red line when I add the video but any effect, eg, a simple fade in causes the red line to appear, however any effects I've used, although they cause the red line, save just fine. The only problem is with the color correction. I discovered I can get around this by rendering the affected clip. (which gives me a green line). I'm happy enough with this work around. I had been toying with the idea of getting a new computer. Do you think a new computer with an i5 or 7 processor and a better graphics card might eleminate the problem?
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For any added/adjusted Effects, or overlays, such as Titles, PiP, or even Transitons, then one will get the red line. For ultimate playback, Rendering the Timeline will improve things. This ARTICLE goes into more detail on what Rendering is about, and what it can do.
Thanks for that quick reply. I'll check out that article asap.