Thank you Perrone and Jon
"the dynamic range of a camera depends on the whole system, including sensor technology, size, and the rest of the signal chain". That`s it.
Ron

My 550D gives great colour, i use neutral with the colour set down a notch.

In general, that's true, especially if we consider the typical photographer's definition of dynamic range, where there is a high standard for the amount of noise accepted in the shadows. However, it's because of the larger sensor, not the larger pixel, that large sensors can deliver more dynamic range. A larger sensor with the same area per pixel (i.e. more pixels instead of larger pixels) can and does still deliver more dynamic range. This is easy to verify, as I've done here:

Image comparison

The reason why is pretty straightforward: when images from a small sensor and large sensor are displayed at the same size, the large sensor is concentrating more light into the same area. Whether that light is from one larger pixel or multiple pixels of the same size doesn't affect the outcome: the larger sensor has more dynamic range.

Agreed.

But it lacks the sharpness resolution of my HV30 which is a big dissapointment, its nothing to do with the edit i edit the raw 1920P files and BDs etc have the same resolution as direct camera playback.

Yes Martyn, my HV20 had noticiable more detail resolution than the t2i, as well as more latitude (dynamic range), even using your set up (neutral with the colour set down a notch).
That`s for me is the biggest disapointment.
But it is a good and cheap way to get shallow depth of field, very useful in many situations.