When using stream clip what is the best format to convert to for editing...

On FCE? Many thanks!

This is what you need to use if you want to edit video in FCE without having to constantly render.
Within the Apple Intermediate Codec selection there are parameters you can set (frame size, frame rate and a few other things) ... but these do not normally need to be tweaked because in most cases MPEG Streamclip is smart enough to detect the nature of your source video file(s) and select the appropriate settings for you.
The point is, if you're not capturing video directly from a DV, HDV or AVCHD camcorder, then you need to convert your video as above if you want to edit it in FCE with minimum issues.

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