AE can work with HDV but you are going to have some patience, I have a 3 ghz dual sistem with 2 gb of ram and every time I use AE with Hdv my house moves. Also by carefull with the order of your codecs othewise it may not even start.
A good idea to work much faster is to create a proxy of your footage, if you dont know what im talking about check Andrew Kramer’s website http://www.videocopilot.net he has a tutorial on the subject.
hope it works.