Thanks for the answer. My main reason for doing the demo was to test the "native HDV" mode. Is it real time capture or is there a proxy at capture which has to be rendured out as well as affecting file size?

As far a s capture goes it captures the Native m2t format of HDV. You can convert it to a proxy in Vegas, lots of options there.
As far as real time, if you mean can you capture real time as you are recording ? well yes, in the HDV capture utility if you hit record while the cam is on it will record what it is monitoring as an m2t file. But a better solution is with something like HDV rack thats coming out soon by Serious Magic that lets you monitor the signal better, and have a larger off cam monitor to check your recording/scopes/zebras etc. It's supposed to be awsome!

But if you mean real time as far as capturing the m2t file and converting it to a DV proxy or intermeadiate at the same time , no.
Not even the Cineform stand alone really does this effectively.
Least most of us have had issues with trying to do that. that is with fairly fast single 3.2 p4 & ^ proceesors. I dont know about dual monster machines. we all capture the M2t then converted after.

Besides alot of us are finding that using Gearshift (VASST product that will convert to various proxies then replace back the orig m2t file for final rendering ) seems to be the way to go even over the Cineform DI .

corrected speeling

Thanks, Let me make sure I am hearing you. Even with a fast machine, I can not capture my HDV footage directly to Vegas and start editing. I will need to capture and then create an intermeadiate using a "plug in?" like Cineform or Gearshift. If that is the process then how fast is the conversion process (1to 1 ,5 to 1, 20 to 1) and then once finished editing a rendure of the edit and a conversion back to HDV. Is that the work flow?

Other folk will be able to give you a MUCH better, more clear answer, but I wanted to put your mind at ease while you're waiting for those replies; yes, you will be able to capture using Vegas 6, and directly edit that footage.
One of the things you CAN do with V6 is, while capturing, Vegas will make you a proxy on the fly. The reson to do this, as I understand it, is that MPEG2, which is HDV, is VERY difficult to edit on, so Vegas uses Cineform to make an AVI that is, if not real time, very close.
However, if you want to, you can use GearShift. What this will allow you to do, if you choose, is to capture using a Standard Def proxy. Then, Vegas will only be manipulating a SD project. Once you do all your edits, taking advantage of SD speed, you can GearShift back to HDV (or other).
But rest assured, you can edit your HDV footage right off the timeline straight from capture. There are just some possibilities available to you how you want to do that.