Recommendations on HD camcorder

Hi all. My first born will be here later this summer and of course his Dad wants to shoot everthing in HD ;o) For the most part, whenever I currently need to shoot, I grab a Sony PD150 we have here at work; but now I'm going to need something on a regular basis and figure I might as well shoot HD. I'm considering going tapeless, so Pani's HDC-SD1 is on my list... The AVCHD work around is my only concern. Sony's HDR-HC7 looks impressive too but then I'm back to tape based. Any recommendations? I'm looking for portable, powerful and preferrably tapeless.
MacBook Pro 17"   Mac OS X (10.4.9)   FCStudio / Avid / Nitris / Discreet Smoke

You are not confused, but correct. If you are doing compositing, HDV (or DV for that matter) is not an ideal choice due to the 4:2:0 (4:1:1 for DV) color space. FCP offers the option of rendering transitions and other effect in ProRes 422 so that they will have better color renditions and subsequent compression will be faster.
Another reason to use ProRes (or DVCPRO HD for that matter) is that the "conforming" process needed HDV is very slow: basically decompressing it then compressing it again into long GOP HDV. Using ProRes etc. don't need to do that because they are iFrame formats.
I was considering ProRes 422 HD in order to improve the down conversion to SD. Direct down conversion in compressor 2 from HDV to MPEG2 resulting is jaggy edges due to what was termed the "dreaded line doubling" in compressor. Dumping the HDV sequence into a DVCPro50 (SD) sequence, and then sending that to compressor (possibly with a light blur) reduces those jaggies. I was hoping Compressor 3 either fixed the direct conversion of HDV or ProRes 422 to give as good a down conversion as possible. I was disappointed in the cross conversion to ProRes 422 HQ, but again, I'm likely doing something wrong somewhere. No one seems to be able to shed any light on the subject, however.
Ed

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