Got it figured out. I realized upon my previous post that somehow the computer was recognizing the camera as a DV camera and not an HD camera. Soooo…I check the manual on settings, and sure enough.
From VTR mode, you need to go into Signal Setup. Set Playback Std as HDV, not Auto, set HD Down-Conv to OFF.
Problem appears to be solved. All this time I kept going into record mode settings, and setting DV OFF/DV ON.
Thanks. Hope this helps someone else.