What is the best codec to edit footage?

I feel this may be a simple question. I have DVCPROHD footage at 1080p. What is the most efficient way to import my .mov files into Final Cut and which codec should I use when I edit?
Currently, I've been edited in the DVCPROHD format and I use a lot of graphic images in my video. Maybe another question I have is if I should be editing in 720 or 1080? Most of my videos are for the web and I find that when I import my images, I have to scale them up to fit in the frame which causes a drop in quality.
Any advice would be helpful. Thanks.

If you shot DVCPRO HD at 1080p, then you should edit DVCPRO HD 1080p. If you have images, compose them to fit your frame.
You can go to 720p, but then you have encode time added to your process. So if you want 720p, why not shoot 720p?
Shane

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