How to choose the right codec in Final Cut Pro?

Hi, I'm new to FCP. I'm using the Final Cut Pro 7 and my video camera is Sony SR1e in AVCHD format 1440 x 1080i. Can someone help me to choose the best codec for project setup? Also is the codec setting for transfering video must match the setting for the sequence? Thank you!

convert to ProRes
Watch this
http://library.creativecow.net/rossshane/tapeless-workflowfcp-7/1

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