Thank you Tim, this is extremely helpful

I just downloaded the trial of HDVxDV and will likely try it shortly. Do you have any suggestions for how to setup this program, and would you think that this is a better step?

Regarding the Imovie setup, I recently re-formatted the system to insure a clean install of FCP 5.0.4 and in doing so lost my iMovie HD install, it reverted back to Imovie, and since I bought the G5 used, the MacOSX restore disks did not bring it back to Imovie HD. I thought that it would be bundled in with FCP Studio, but it was not. So unfortunately, I cannot use that workflow now. Which has me stuck with the FCP Media Manager route. This is working as far as I can tell, but does take quite some time. BTW I'm re-rendering into 720x1280 59.97 clips using AIC in MM if I remember correctly.

I've yet to actually edit anything, We're still in the ingest stages. I really bummed that #1 The CU-VH1 won't output the right timecode on screen, and #2 I've lost the Log and Capture utility that reads, preserves and uses the original tape timecode. At this point my clips are all "auto scene detect" number -1, -2, -3 and so on.

HDVxDV is good for ingesting m2t streams (of any size or frame rate) from firewire. It also will batch convert those m2t streams to any quicktime format. I highly recommend purchasing HDVxDV if you are shooting 720P24.
However, since your footage is 480P60, I would suggest you download MPEGStreamclip to batch convert your m2t files to an editable quicktime format. http://www.alfanet.it/squared5/mpegstreamclip.html
This would be a good plan-of-attack if you wanted to crossconvert to 29.97fps (drop every other frame) and edit in the DV or DV50 codec. However, processing time should be considered.

So you must have Panther, not the Tiger Install disk? iMovieHD ('05) is standard with Tiger.
If you want the speediest ingest possible, you will be happy to know that the iMovie real-time AIC converter is built into FCP5. If you use the following method you won't have to convert anything. I will warn you that I have never tested this method with 480P60, but have used it extensively with 720P24 and 720P30 footage.
To digitize straight to AIC codec at native resolution, just rewind your tape to the start, go into FCP's "Audio/Video Settings," change the "Capture Preset" to HDV - Apple Intermediate Codec at the very bottom of the list. Now select "Log & Capture" and you will just get a Filename prompt. Type a name, hit play on the tape, and start capturing. Autodetect will be used, so you will have to rename your clips after this process. I'm not sure if TC will be captured properly with 60P. The good thing is that it is a real-time process and AIC doesn't actually use too much space - about 150% more than DV.

I wouldn't put too much hope in getting the proper TC since 60fps TC is not a standard SMPTE format. At this point, just try to get the stuff ingested as quickly as possible and start editing. Don't plan on going back to the tapes to re-capture... ever. Just get a big FW HD if you need it.

Just put this one behind you and mark it down as a lesson learned for the next shoot.