I capture the native HDV .m2t, then render to CF intermediate using Vegas 6.0b. I then use avcutter to do scene detection and split up the CF avi files. Realtime conversion using the Cineform HD link had less than desirable results, i.e. picture breakup and lost frames. This was using a P4 3.2 GHz HT with 2GB of memory and 500GB SATA 150 Raid 0 (2 x 250GB).
No and no reason to buy the CF product. You can now capture AND convert (though not scene detect) in Vegas or automate with a script program called GearShift which is the recommended method. A lot here on GearShift. One of the GearShift threads has the manual Vegas method I posted.
As I have posted here some time ago - the best combination is to use Gearshift, and then use AV-Cutty for a scene detection. Export the scene detection list from AV-Cutty as an EDL file for Vegas-5, import that to Vegas-6. Run the script that Johnny has developed here, to group again every audio and video file - and make the cut in the timeline.
Connect HD 1.7 just become a public beta. We hope there is still reason to purchase CHD even with the Vegas integrated support. Version 1.7 along will some cool new feature also fixes a codec version conflict between the commercial CHD and Vegas 6.0 release.