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This question is a little difficult to answer without knowing your background. To some amateur and budding film-makers (As well as pros) the quality of the HDV footage from the H1 is stunning and you can do some great effects work with it and get good results. I personally think it will blow you away if you have no extensive effects experience.
However if you are used to shooting and doing post work on 35mm film footage, DVCpro HD or a RED ONE for example, you will likely feel very limited and notice the lower color depth and compression artifacts that limit how far you can push an image.
Sorry I didn't answer you question directly but I am trying to get some perspective on where your background is.
To add a little extra, many users capture video from HDV cameras using the SDI output which bypasses the mpg compression and color-downsampling and delivers a more robust video stream (if youhave the hardware to capture it), which is particularly helpful if you plan to do a lot of visual effects processing. You mentioned the XL-H1a which actually doesn't have this feature. If your line of work calls for heavy effects you might want to consider a camera that has this or some kind of uncompressed digital feed.
Thanks.
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