Yes, you can directly ingest XDCAM into Vegas 7. You'll only need the XDCAM reader installed on your system for Vegas to see it as a file from the cam or deck. Saves a LOT of time.
Working with it on our end, and it's a great feature indeed.

Nice link, thanks. That's exactly what I was hoping for.

How long would say 30 minute of video take to transfer in using this Proxy method?

Proxy files should not take long. They import at 20x realtime from a single laser head device I believe.

"We have just finished digitizing hours of XDCAM footage via component into our Avid"

Yowsa! Stop right there! Go back, back, back! You ingested via component?!

You can perform proxy editing followed by a conform or full res editing. This can be done either by using Vegas 7 on its own, or by using PDZ-1 in conjunction with Vegas. I still use PDZ-1 because it allows me to perform a partial file transfer as well as allowing cliplists to be written back to the disc for future use.

However, because you can import cliplists onto the Vegas 7 timeline, this enables you to create cuts only edits in the field using PDZ-1 and the proxy files on a lowly laptop, and then import them directly onto the Vegas timeline where you can refine them with L and J cuts etc, and anything else you need to do when you get back to base.

There are different ways of doing things depending on your current software, or your preferred way of working. I will probably write another article going into the possibilities in more detail. In the mean time I have also written this http://www.simonwyndham.co.uk/xdcam_case.html which covers the way I have been working on a long form documentary as well as some other aspects. It is also a bit of a rant, but there may be some stuff for you to pick up on there too.