Eric,
I would not give up your XH-A1 at this point. Look at the XH-A1 and the HDSLR as two different size hammers. Choose the right tool for the job at hand.

Budget wise, all the items you selected before add up to around $3033.00.
Here are my choices for an HDSLR in 2009...
The Canon EOS 7D Body Kit $1700
The Panasonic Lumix GH1 Body & Lens Kit $1500

In my opinion either camera would be a great choice. I own the Lumix GH1 and will more than likely purchase the 7D, unless Canon releases something even better before that time.
Your Canon EF lenses from your XSi will mount to the 7D giving you a start there.
Also factor extra batteries and memory Cards into your budget.
Use your XH-A1 to capture audio just like before.
Also both the GH1 & 7D will accept a huge number of lenses from other manufactures via lens mount adapters, giving you access to a vast supply of cool lenses when your budget is fit.
Good Luck!

David,

Great looking set of lenses you have there.

I was under the impression that one should stick with similar shooting equipment instead of mixing and matching, at least with the base equipment, to keep a similar feel throughout the movie.

I guess what I am trying to say is I would hate to have a scene shot with the A1 (maybe looking a little soft comparatively to the 7D) and then move to another scene or a close up with huge pop factor and DOF. I understand using different lenses for different looks but would using both the A1 and 7D provide a steady visual workflow? Would there be a huge difference between the two? From what I read so far, the 7D footage is quite different looking, in a good way.

I really appreciate your patience and advice you are giving to me.

Well, I went to a couple of shops today, one being a site sponsor. I was not able to shoot any footage to bring home with me but I was able to use the 7D with a pro monitor hooked up via HDMI. I have to admit, the image is really good. The DOF is really good too. I was able to compare, side by side, both the 7D and a Panasonic with a Letus attached. Both had really good depth of field.

I don't know if the 7D is going to be good option for my workflow currently. For me, I think it would be much easier for the time being to use one camera for both video and audio. And I didn't think the camera with the Letus attached was too awkward. I am going to mull this over this weekend and continue doing some research.

It's your cash!
I would suggest though, if you do decide to get a DOF adapter, save yourself some money and get one of the many well taken care of used adapters out there that are for sale.
The prices on them are pretty good compared to new since the bottom fell out on DOF adapters.

Good advice. I already started looking at some of the prices and you are right. They are starting to show up. They seem to hold their value pretty well, at least for now.

Would you answer me this:

Do you use both your HDSLR and XHA1's footage together? Do they look good edited together?

Also for on the set, would you use the A1 more for master shots and then the HDSLR for Med and Close-up shots while continuing to keep the A1 recording for sound?

Thanks again David. I am not completely counting out the 7D because I respect all the opinions and feedback I have been getting, I am just having a hard time wrapping my head around the actual workflow on set.

personally I would set up the A1 to capture sound and wide shots, and use the 7D off to the side and get some OTS shots. You could use it to get extreme close ups on faces and it would be a great camera to give to another person on you crew and say, "Here, go get some interesting angles"

Here, this is a video of a music video shoot, You can see a guy in the back with what looks like a 5D. He gets the shots that are offcenter and too close to try with any other camera. I think they look great!

The real video is just below it. you can see how seamless it is.

Is there a link that is supposed to be attached?

I just wanted to thank everyone that gave me advice on this thread!

I am holding off on any purchases for the time being. I have a feeling that Canon is going to release a new camera next year and I want to see what it's all about.

I shot my school project with the A1 and it did turn out pretty good. I would have liked more DOF but I think it will be more practical for me to hold off to see if they release a new camera instead of all the extras I was thinking about.

I will post my project soon to get some opinions.

Thanks again,
Eric

The very best purchase you could make that would improve your results is a really good video tripod head. Based on comments in dvinfo.net, I bought a Sachtler FSB-6 tripod system with CF legs, and have been stunned by the improvement over Manfrotto 503 and HDV503 heads.

I also bought an FSB-2 system and will switch out the legs for Gitzo CF legs. I have a ton of Canon digital still gear, as well as a new XH-A1s and HV40. I will probably get a 7D, and would not think of using tripod with it (for video) other than a Sachtler FSB-2 or FSB-6 (depending on total weight of the camera and attachments).