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I record dance recitals and produce 16:9 DVDs. Since I need to end up with SD16:9 video to edit in FCE, would I get better quality recording in SD 16:9 or HD and outputting as SD 16:9 from my XHA1?
You will get the best quality if you shoot is HDV and edit it in HDV and then render out for SD DVD
Thats assuming you have enough computer to edit in HD.