matt, I use premiere pro with my 7D all the time. I would say not having to transcode is the primary reason why I do this. Also when you go to finish and export the adobe media encoder is a world above compressor. Personally I prefer adobe premiere for many reasons, but know if you want to bring in another editor you may run into problems.
Linda, don't assume your school will support anything. Mine never did even though I was paying 40k per year. I made a film about a video games and used tons of footage of the games without permission. We didn't paint the most positive picture of the games, but they left us alone. Fair use is your best friend. Learn it well, and you should be okay. Also if you do get sued you get tons of press. I would fly under your enemies radar until you are ready to screen. If you buy errors and omissions insurance before you screen, at least you will have an insurance company defending you from any suits.