The HG10 records High Definition only (no Standard Definition available) as a file to an internal 40GB hard drive using the AVCHD Codec. 4 different levels of recording quality are available, each with unique hard disk space requirements. At 15mbps "Best Quality" you can record 5 1/2 hours of HD video. Again, no Standard Definition video recording is available.
You transfer the AVCHD clips from the HG10 via USB2.0 to your computer hard drive for editing. With FCP Log & Transfer Mode, you have a choice of ingesting the clips using either the Apple Intermediate Codec or the new ProRes422 Codec. That means that you don't edit in FCP using the AVCHD Codec - you have a choice between the two aforementioned Codecs to use as your editing Codec... With iMovie the clips are ingested using the Apple Intermediate Codec.
A friend of mine told me that it didn't matter if the camera only taped in HD. He said FCP can convert HD to SD for those clients that still want SD DVDs. I've never worked with HD, and he's never worked with FCP. So I'm just wondering if it's as easy as he says it is?