Testing FCE 4.0 importing/editing Canon G 20 footage

I want to evaluate my newly-upgraded FCE 4.0.1 (on late 2007 Intel dual-core MBP running Snow Leopard) with footage from a Canon G20 before I buy one. I have the opportunity to get test clips on an SD card fresh from the camcorder of a friend. I think the G20 will create a large variety of clips, and I'd like to know in advance which formats would be of possible use.
From what I have read online, I gather that FCE 4 will edit AVCHD but not MPEG4 clips. Is this still true of FCE 4.0.1?
If possible, I'd like to check out 1080p clips as well as 1080i. Is this possible? Desirable?
Anything else about file formats acceptable to FCE 4.0 that might be relevant would be greatly appreciated!
Thanks,
Sharron

Sharron,
My suggestion is to use an AVCHD camera and set the camera to record at the highest data rate for interlaced footage.
Progressive will not really work with FCE, however, one can sledge hammer "square footage into a round NLE hole" if you get my meaning.
As you know it means mega rendering.
Interlaced high quality AVCHD will slot exactly into the Timeline like a glove; no rendering except for transitions, effects etc.
As Ian pointed out this footage will be converted to AIC on ingest to around 40 gig an hour.
The conversion is so FCE can see each video frame as a full frame rather than a compressed form relying on other adjacent frames to fill in the gaps. This compressed form is designed for watching NOT editing.
All HD video is large and if you try to get around large files you end up with large render times.
Al

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