Is it a viable solution to use windows media encoder to capture from a dv camera using the "HD settings"? Especially if shot in anamorphic 16:9? Will this result in any high of quality video over just a regular DV stream?

No it will not. Neither will your computer be able to keep up.

DV is coming from the camera over the firewire port whether you
want it or not. So if you are going to capture it in any other format
then you are just converting from DV to something else.