FCE only edits in AIC - Apple Intermediate Compression (for HD) and DV.
All of your material will take a hit in quality.
Additionally, you shouldn't transcode to h.264 - but rather use the Animation codec (huge files, zero lossage). h.264 is meant for distribution.
As far as perfect? You'll have to end up with something else - either FCP 7 (really similar), FCPX (really different), Avid Media Composer or Premiere Pro.