Pinwheel when I try to move the cursor in the timeline or playback video

every time i try to move the cursor in the time line, or even playback my footage fcp immediately starts pinwheeling! i can't get anything done. i'm working off an external hard drive (g-drive) that still has around 200gb of space left, i've switched computers and the problem persists -- which leads me to believe it's the external drive causing the problem. any advice? i'm using fcp 7.0.2 -- help!

if i shoot in h264 i ALWAYS have to convert to prores?
If you work in Final Cut Pro, yes.
h.264 is a highly temporally and spatially compressed format designed for DELIVERY. It is extraordinarily resource intensive and causes all sorts of unpredictable project failures when edited directly. FCP does not support it directly. To take advantage of FCP's power, it must be converted to a natively supported format - ProRes for example.
That the sleazy cam producers have glommed onto it as a way of recording their output on really minimal media is more a statement of their desire to make things cheap than their desire to make things easy for you, the editor. When you consider that the great mass of crap recorded on these cams will (thankfully) never see the light of day, their position makes sense.
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