If you are downconverting to DV out of the camera, you are capturing regular ol’ 720 x 480 DV (in NTSC), so your project setting should also be NTSC (or PAL) DV.
Capture makes no changes to your video or audio. It is a direct copy of what the device is feeding the computer.
Gary Kleiner
Learn Vegas and DVD Architect
http://www.VegasTrainingAndTools.com