Understanding codecs + video editing on slow machine

Hi!
I have really slow machine (Celeron 900). Editing Full HD, even with AVID DNxHD is a real pain. Export takes much time too. I decided to use offline mode trick discribed here - http://www.youtube.com/watch?v=6WK0sX75c4E (don't be scared with a cat in the begining ). And I started to play around with encoding options in Media Encoder to get best proxy videos. It's not simple and I can't decide what settings are right for me. Can you help me?
And, in general, where can I find detailed info about different codecs, their options and usage? I really need someone to explain all this stuff.
Hope on your advice!

Have you looked into CineForm's NeoScene? http://cineform.com/products/neoscene
When AVCHD was young, and many had less powerful machines, it was very good for them. I never used it, so cannot directly comment.
Might be worth a look.
Good luck,
Hunt

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