MPEG4/H.264 editing onthe timeline

I was wondering if it was possible to import and MPEG 4 file of SD or HD resolution into the FCP 5.1 timeline and edit this footage with frame accuracy or if there was a way of transcoding so there was minimal quality loss. I am aware that it is a lossy codec but have a few projects that originate on MPEG4/H.264.
Thanks!

Hi,
I am working with some technology that currently captures video with M-JPEG files but this results in artifacts that are hard to clean up.
Assuming that MPEG 4 has the potential to capture high quality SD imagery with real time encoding, this footage would then needed to be edited in post. If it is possible, then MPEG 4 would be the way to go. Basically looking for a very efficient way of capturing video at a high quality over a long period of time without nasty processing artifacts - that is also easy to edit or transcode - hence looking at MPEG 4.
Thanks

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THANK YOU

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MPEG4/H.264 editing onthe timeline

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