Can't figure out how to get real time.

JUST got FCE 4.0, I've been a long time Sony Vegas user, so allot of this is really new to me.
What I can't figure out is, why I have to render my project to view it on the canvas? I haven't even applied any FX to the clip and I still can't watch it in real time. I've tried .mov and .m4v with the same results.
What am I doing wrong?
Thanks gang
~max

Some aspect of the exported QuickTime file doesn't match the sequence settings you've chosen in your FCE Easy Setup. That's why rendering is needed.
If you exported a DV Stream from iMovie, that's part of the problem. A DV Stream blends the audio and video into a single multiplexed file; FCE separates audio and video.
I have no direct experience with AVCHD, so can't help you with those specifics. Suffice it to say that if your imported QuickTime files match your sequence settings, you won't have to render them.

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