How to Work in 720p then Switch to 1080 to Export

Hi,
So I have been shooting in 1080 on a dSLR, and I want to export at 1080 for HD playback. The thing is, I'm doing a fair amount of color grading and using Magic Bullet Looks, and my machine just isn't robust enough to do that on the original 1080 material and allow me to see the results as I go.
So I made 720p versions of all of my footage, and edited that. Then I tried to Replace Footage each of the video files with the original 1080p. I thought that would work. The problem is, all of the video clips I made and laid in the timeline remain 720p.
Is there a way to do what I'm trying to do? This help file (http://help.adobe.com/en_US/premierepro/cs/using/WS1c9bc5c2e465a58a91cf0b1038518aef7-7f74a .html) made it seem like that was all there was to offline editing, but obviously I'm doing something wrong.
Thanks!

Is there a way to do what I'm trying to do?
There are two methods vastly superior to the one you're using now.
First, edit in 1080 and just render if you need to see a realtime preview.
Second, edit in 1080 and get better hardware to handle this stuff.
(Personally, I think option 1 is your best bet.)

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