Mixing SD and HD
 

I recently purchased a HG10 and am building a new PC with Sony Vegas for video editing. My first project is a video for a friend's bachelor party. I'm planning on mixing old footage of him off of VHS along with interviews of friends filmed with the HG10. I know there is going to be a huge difference in quality between the old and new footage, so I'm just looking for recommedations in the best way to approach this and make it as watchable as possible. Any thoughts or suggestions? I am very new to video editing and Vegas.

Thanks!!