Right. If you’re going to be using these as a source for anything, use the 22gb versions and not the highly compressed 8gb one, because the lagarith encode will be roughly the same size.
If you’re only making a few small edits and have a decent machine, you can import the 264 streams from KK650’s release directly into editing software like Adobe’s. If you’re going to do something that has hundreds of cuts, different sources, and lots of effects applied, things will get bogged down and you’ll probably want to go the lossless route.