Question about subclips in a long project

Hello all;
   I am editing a 1 hour long documentary in full HD with a lot of clips and so forth in it.  What I have been doing is for some segments creating a sequence in another project, rendering it and saving it as a H264 Full HD format, the same as the main project.  Then importing that rendered version into the main project instead of all the component parts.  This makes it harder if I want to change anything in that segment, but it cuts down on the load time of the main project, and seems to work OK.
  My question is - when I finally render the whole 1 hour project, will these included clips get degraded because they will be (I guess) rerendered?  Is there a better strategy for this?  Also, I'm doing the project in three 20 minute sections that I intend to simply run back to back in Encore when I'm done.  Is that likely to be a problem.
Thanks in advance for any advice on this.
Jim G.

Hello again.
I hope you don't mind if I ask you a follow up question about this issue of consolidating complex sequences into a rendered video file and then using that in a longer sequence.   On CS5 within the Export screen there is a button labeled, "Match Sequence Settings"  if I render a segment with that selected and import that into a longer sequence is that a problem too?  Or do I have to select something like AVI lossless?  Or should I avoid that as well? 
Finally, for After Effects segments that I want to incorporate into Premier, I can use the Dynamic LInk thing, but it seems to mess with the color when I see it in Premiere.  Would it be OK to use the lossless renders from AE in the CS5 timeline?
I apologize for pestering you with these questions.
Thanks,  Jim Greeson

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