Why not downscale all you HDv footage to SD using either the Sony YUV of Cineform codec, edit that and your DV footage in a SD project ?
You'll have a more pleasant editing experience and unless you plan to zoom in on any of the HDV footage loose nothing in the process. Only challenge could be that your HDV footage is 16:9 and your SD is likely 4:3.If so you can do a cutout of your HDV to 4:3 in the downscale process.
<<Why not downscale all your HDV footage to SD using either the Sony YUV or Cineform codec>>
I'm faced with this challenge as well. In Premiere I would do a batch conversion on all the individual files. How would I go about converting my footage to YUV in Vegas?
I have not tried this, perhaps someone will know if it actually would work. Put the SD and HD assets you want to work with on the timeline. Use Gearshift ($50 from VASST) to render intermediate SD for the HD assets, and swap them out on the timeline. Do your editing, including the zooming on the (originally) HD assets, which will be a breeze because you'll be working in SD. Then have gearshift swap back to HD for the final render. That way you get the ease of editing in SD, but when you render out you will be getting the full benefit of the higher HD resolution with respect to zooms or pans.
Why not just create an NTSC DV timeline and put your HD footage on it then pan/crop, match project settings? In the end, it will render out a perfectly fine SD video.
Are you wanting to render out HD or SD? I suppose that would make all the difference.
There's a big advantage especialy if you're in NTSC land to rendering from HDV to SD from a HD project. You pickup quite a worthwhile boost in chroma sampling. HDV has a lot more chroma samples than DV, converting to SD @ 4:1:1 first throws that away and isn't so good when you encode to mpeg-2 at 4:2:0.
If you want to avoid putting HDV onto your T/L and keep as much as possible your choices are NeoHD, Sony YUV or uncompressed. The first you have to buy, the later two gobble up more disk space, the last quite a lot!
No matter what you decide on I don't think there's any reason not to just put the SD footage into a HD project and encode to 16:9 SD mpeg-2. Obviously you do not want to zoom in on the SD footage but there's no solution to that limitation.