Process for Integrating HD and STD Video in One Sequence?

Here's the situation, I have footage of an event from 2 cameras. The customer wants footage from both cameras in the final video. Naturally when the standard footage is dropped into the timeline it is accompanied with ALOT of black space. What is the best way to eleminate most of the black space? Do I use 2 different timelines and them somehow integrate the 2? Please help!

Either scale the HD source down with the motion effect (best) or scale the SD up to HD dimensions with the motion effect (worst) or use a special plug-in from Redgiant Software (OK but costly).
Since most deliveries are still on DVD, thus SD format, the first option is best. You can also use two different sequences, one with HD and one with SD material and export them separately to SD format, but the drawback is that you can't mix footage from the two cameras.

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Process for Integrating HD and STD Video in One Sequence?

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