Whether sourcing on film or video, the production process can be illustrated using this basic workflow outline. This workflow is pertinent to any kind of production which contains prerecorded and then edited or processed film/video imagery, and then requires playback or distribution of that imagery. This includes traditional narrative filmmaking all the way through the spectrum to media sculpture which contains produced content within it.
As you begin, consider the question: How will people see this work? The answer to this question will help you make many technical decisions along the way.
SHOOT--->CONVERT to INTERMEDIATE--->EDIT, PROCESS--->ONLINE YOUR MEDIA--->OUTPUT to FINISHING FORMAT(s)
How will people see the work? How will it need to be distributed? If you're shooting a Youtube video, do you need to shoot 35mm film? Alternatively, if you're shooting a Youtube video, are you certain it doesn't ever need to be seen in HD? Maybe...
The shooting format will be the highest quality any production will be able to match. If you shoot SD, you can't turn it into HD. If you shoot 16mm film, it won't ever be 35mm film, etc. Typically, shooting format is a step higher than the highest anticipated need, ie shoot 640x480 if you only expect the work to be seen on the web at 320x240. Your project needs may differ, however.
Shooting formats tend to differ from editing / processing formats.
While shooting format is the high-water mark within a project, the intermediate format (or editing/processing) will be slightly smaller and lower quality. This preserves computing power. This process is known as Offline; you will work with lower-quality files to speed the process, and then replace them with the highest-quality needed when you are finished working (known as Onlining).
Video Capture or Telecine?
Depending on how you shot, you may reach your intermediate format either during video capture or perhaps as a result of Telecine.
Video Capture:
Your video tapes are your camera masters. You must preserve these. If you capture your video IN THE SAME FORMAT it was shot, you have an effective duplicate of the masters. You will need to make copies of these files, in your intermediate format, to edit with.
ie: You shot HDV/1080i. You captured HDV/1080i. Now you have 2 sets of masters - one on tape, and one in the computer. Duplicate and recompress the captured files into an Intermediate codec, such as ProRes/1080i, or Photo-Jpeg/720p. When you're finished, you will Online to whatever Output format you choose.
Sample Final Cut Pro workflow.(link - twinned folders/hi-res/intermediate)
Sample Avid workflow(link)
Telecine:
Ultimately, your film is your camera master. But you can also have telecine to hard disk using the Uncompressed setting for codec. These are your digital masters, but they are much too big to edit with. Therefore, just like with video capture, you will make duplicates and recompress these into your intermediate codec. You will be able to online this edit using the Uncompressed files, if you need to increase your resolution.
If you don't want or need a digital master, you can also ask your telecine operator to give you back your footage already in an intermediate format. Labs can generate ProRes, DV, DVCPro, etc - but it will mean that without another transfer, you can't achieve a higher format than your intermediate. Know what your end result will be.
Editing is done in the intermediate codec, using the platform (mac/pc, Final Cut/Avid, etc) of your choice. The intermediate you choose may depend on how you want to work with the footage - ie, ProRes codec is for Mac/Final Cut only. Avid codecs are ideally used in that program, etc.
Processing and Special FX are often done in the intermediate codec as well. There are exceptions, however, when the FX require the very highest resolution detail to be programmed properly. In these cases, these shots are separated out and worked on in a higher resolution, to be matched later with the rest of the project.
Once your edit is complete, you can connect all your intermediate-codec clips to your master-format clips, and create a sequence at your highest possible resolution. This is only necessary if your Finishing Format is to be a higher format than your intermediate. If you are finishing at a resolution/quality equal to your intermediate, you may not need to re-online your clips at all.