Am I doing this right??? AVI to FCP via Streamclip, what export settings should I use???

I'm in unknown territory here, please help!

I am making a video out of footage from an older Flip camera (not the HD version). I am editing in FCP 7 and converting the files with MPEG streamclip. I am using an older Mac and would like to convert the files to a proper format - one that isn't huge but will not need to be rendered in FCP while I edit the film. I know that the footage I am starting with is not very high quality at all ,so I don't want to go overboard with the file type, I just want a smooth workflow. The final video will be viewed mostly on computers and YouTube, but needs to look professional. (I am brand new to all things video/digital and learning as I go, so thanks in advance...)

After reading everything I can about how to convert the AVI files, I have come up with the following MPEG streamclip settings. I would like to know if these seem correct, if there is anything I can or should change, before I convert all of my footage.

MPEG streamclip settings:
Apple ProRess 422 LT
100% quality
unscaled at 640x480, 30 fps
no other changes.

When I export with those settings and I let FCP adjust my settings to match the clip, I don't have to render.

These are the details of my original Flip footage:
AVI, 640x480 bit rate 41845, Bit Rate: 3.28 Mbps,
Video Tracks: Xvid, 640 × 480, 30 fps, 3.10 Mbps
Audio Tracks: MS ADPCM mono, 44.1 kHz, 177 kbps

Am I on the right track? Does this all make sense? Is there something altogether different that I should be doing???

Thank you very much!

You've got it right.