Hi Dan,
Take a look at a few threads down—-I posted my question about FH file format and rendering. You might want to record in FX. I use FH, but have some troubles rendering at the original quality. For downsampling and making DVD disks, FH is just fine. Also, 16GB SD card is good for maybe one hour, so you might need another card? One more thing, do you use class 10 cards? I really recommend faster cards like class 6 at least for FX mode and beyond (I use Class 10). If your card is slow, your image would be kind of skipping (dropping frames).
I’m also new to HD video shooting/editing, but just trying to help. Good luck!
Regards,
Masaaki