Select "Add Files" and add the files from the directory where the footage is located.
Next, click "Go" and select "Encode to QuickTime." QuickTime is a versatile format that Avid Media Composer, Adobe Premiere, Final Cut Pro, iMovie, and most other editing applications can easily read. Select a destination folder--again for speed, use a drive that's local, but an external drive is fine if capacity is a concern.
For editing, select "Apple DV/DVCPRO."
Ensure the quality is set to 100 and the size close to the original's aspect ratio. 720 x 480 is recommended for those using NTSC.
Encoding movies can take a while and uses a large amount of system resources. The length of time needed will vary dramatically, depending on the quality of the input file and your machine's technical specifications.