I was playing around with the settings and I must have changed something because everytime i bring something to the timeline the red "needs to be rendered" line comes up. Im using Standard Def NTSC, I tried deleting preferences in library, but that hasnt work. Has anybody had any problems like that?

It would help if you could give a little bit more information. What exactly are you trying to accomplish?

Anyway, you can't change the format of a sequence once it has been created. Choose the right setup (either Easy Setup or Audio/Video settings), create a new sequence and copy everything in your old sequence to the new one.