Best/Least Processor Intensive Offline Editing Format

Hey,
I'm using Final Cut Studio 2 (Final Cut Pro 6.0.6) on an iMac 2.4GHz Intel Core 2 Duo running Snow Leopard with 4GB of RAM.
We shot on a Canon 7D which puts out H.264 masters. I've converted to ProRes 422 (in FCP 6 there are only ProRes & ProRes HQ - I converted to the regular version).
Now, although my iMac can deal with that most of the time, it's often dropping frames and certainly can't deal with any effects in real time. What I want to know is which format would allow me to creatively edit, with simple effects, split screens, etc., without needing to render every time.
The best advice I found was in the FC manual which suggested Photo JPEG, which I did, at full frame rate, but 50% image size. The bit rate and file sizes are significantly smaller. In any case, although it plays fine, for editing, anything I do to it - for example to re-frame, slow down, color correct - it gives me the red bar and needs a render.
Is there a format that will allow me more creativity with less need for rendering, during the offline edit?
Thanks very much for any advice.
Best,
Matt

Thanks so much for responding. For some reason, on that timeline, I don't get the same options as on other timelines.?. I chose to adjust the timeline to the footage when I dropped it in, so the timeline and photage should be identical.
So anyway, choosing 'Unlimited RT' isn't an option.
Is PhotoJPEG the best for offline or are there others I could use that would let me be more creative without a render (in realtime)?
Thanks,
Matt

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