Encode HD 1.33 SM or SD 4x3 FF - which is better

I have an HD 1.33 Side Matted source. Ultimately we want to create H.264 QT files to post online. The HD resolution is, of course, 1920x1080, but that includes a matted area. We are also down converting these masters to SD 4x3 FF on Digibeta.
Do we gain anything encoding the cropped 1.33 picture from HD or will we get just as good results from encoding from the SD 4x3 FF? If there is a better picture, is it worth the extra cost (HDCAM SR machine time and rental, etc...)?
Finally, if we do encode the cropped HD material, what bit rate should we use for a good H.264 QT encode?
Thanks.

12mill wrote:
.. I assumed that the HD cameras were just better in terms of quality even though they we broadcast in standard definition. Is this true?..
this is a very complex issue, when you leave your living room at home = work only with one camera, one computer, one delivery device ..
integration into a structure of editors, rooms, delivery-chains, etc.. a diff. cup of tea..
can others handle your files and hardware?
what about archiving?
what about indexing?
technically, for sure a better input results in better output.
but..
HD is 4-6 more data than SD
HD isn't handled 'natively', you have always add conversion-times on input + render times on ouput
there are diff. standards for HD
no-tripod looks in HD/70" TFT even more worse than SD..
the main assets of each format imho:
• HDV allows easy storage of raws AND of final edits => excellent long-term storage
• SDcard is small and ultra-fast in preview, some models allow 2-8Mpixel-stills WHILE video recording
pic quality is defined by camera (optics, chip size and number, bitrate).
and handling.. a 1/4000 shutter speed in a candle lighted room could result in bad pics..

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