I have a Cannon HG20 (same camera, but without the viewfinder) and it works great with PD7 Ultra. It can capture right off the camera HD and it edits and plays back the videos smoothly. I've used the camera with the low quality settings as well as with 1920x1080 30p at 24 Mb/s with no issues.

Jim Q9300 2.5 GHz
4 GB Ram
Nvidia 9800 GT

Thanks James, I am very happy to hear this news.

Thank you for this feedback. I too am looking to take the plunge and purchase a High Def camcorder. Is there any word about the new flash memory Canon models and whether they are compatible with PD7?

I never used the flash memory since I directly upload from the camera HD. One this I should mention is that the software cannon includes for transferring video is much faster than using PD to capture the video files. Sometimes PD will get to 100% and then pause and just hang. I typically end up stopping the program.

Cannon's capture program works much better. As for editing, it do not have any problems. Just remember to save often since PD does crash occasionally, but this is not because of the file format.

Jim Q9300 2.5 GHz
4 GB Ram
Nvidia 9800 GT

Ok, James. Thanks.