Hey Leon,
I did get it to work with some success. However, the steps that I took to do so were extremely time consuming.
First I captured the HDV footage 1080i60 in FCP, then I would drop it into a timeline & space each clip with a couple seconds of black between them. Although I don’t remember the particulars, as I haven’t had access to an FCP system in quite some time. I would then do some brief color corrections in FCP, down-convert the timeline to some flavor of DVCAM (don’t recall which) & print the timeline to a DVCAM tape. This way I have a HD tape and a SD tape, which, is CC with only usable & organized clips. Then I would recapture the DVCAM tape into my PC system using Vegas.
There is probably a much simpler way of doing this using Compressor. I wasn’t successful in getting any decent results with Compressor & since I needed the SD clips for a PC system the most logical path for me was to recapture them. I felt it was easiest & most effective to do the whole thing in FCP. The quality didn’t seem to suffer at all using FCP exclusively as opposed to using Compressor.
Also just shooting in SD would be much simpler. But if you can shoot HD may as well.
Hope this helps some. If you discover any settings that work well please give a holler.
Mike