Final Cut 7/ MPEG Streamclip... noob question.

I'm very green to all this, and could really use some help figuring out the settings to convert an .MP4 file to a file for cutting in Final Cut Pro 7. Please use small words.
I was given a 2 hour, 2 GB .MP4 file that I need to edit in Final Cut Pro 7. I tried to use MPEG Streamclip to convert this file using settings I found on YouTube (yeah, I know).
The problem is, my original file was converted to a much larger file of about 30GB... which seems excessive. I converted at a quality of 100%, using Apple ProRes LT, unscaled... and I think everything else was default.
Where did I go wrong, and what would be the best settings for me to use if I want the final product coming out of Final Cut to be about the same quality (and about same file size) of the original file?
Thanks!

Good quality video takes a lot of space. Get used to it and buy a couple of extra drives.
As to your 30GB, that's about right.
If you want to output a similar sized file to the one you received, transcode back to MPEG 4.

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