Saving as .png file is your best bet if you are using Photoshop 7.01 or the CS series, this is because the .tga file format no longer embeds the required alpha channel required by Final Cut Pro to perform a key.
If you need to have the the individual layers within the .psd file, you will have to fight one more battle. Final Cut Pro only understands standard Photoshop layers within a .psd file.
It does not understand the special effects layers that are an integral part of Photoshop. Final Cut Pro will simply ignore any effect layers that you built in Photoshop.
Therefore, if you have a graphic that contains any effects such as, drop shadows, glows, soft edges, or bevels, you will need to change these effects into real layers, and then merge them together and rasterize all of those effects in PS before exporting. Which is what happens when you flatten the layer with it's effects.
If you have a two button mouse, right click on the F icon to select the 'Create Layers' menu. If you do not have a two button mouse you will need to hold down the 'Controlâ€™ key' while you click your mouse on the F icon.
Photoshop will then create a series of standard layers that make up the simplified effects layers.
Finally, you need to merge all of these layers together. Simply navigate to the 'Layers' menu and select 'Merge Visible'
Notice how all of the grouped layers are now merged into one distinct Photoshop layer. Final Cut Pro will now display this graphic correctly when you save it as a .psd file. The checkerboard pattern will represent the alpha channel which will automatically allow the image to be keyed over video.
Even on a slower system, this particular graphic will play in real-time with no rendering. When your done, you can save your graphic to import into Final Cut Pro. As a reminder, you need to save your graphic with a file format that supports an embedded alpha channel.