David: There is thread in the HV20 forum about using various available free programs to cobble together a "free" pull down solution. Vegas, at this moment, does not do it on its own. I considered learning the various tools, but for $249.00, NeoHDV does it quite nicely, and I bit the bullet. (Actually what I did is buy Connect HD from BH for $190.00 and got the free upgrade.) The positive aspect of that is that you then edit in Cineforms codec, it provide superior color grading capabilities and less loss on multiple renders. You need 3x the space for your captured files, but drives are real cheap these days.

Thanks Chris. I've been reading a lot about the HV20 and if I were to record in 24p I would probably go the route you took.

Could you do the following in Vegas to output a 23.98fps master (instead of a 59.97fps one) via the following method:

A- Capture the HV20 footage as 59.97i.
B- Edit in a 59.97i timeline.
C- When you get picture lock (promise to yourself not to change the edits), flip the timeline into 23.98fps. (Will Vegas put cuts on 23.98 frame boundaries?)
D- Manually go through each clip and make sure pulldown removal is correct. Tedious, yes. But not the most extremely painful thing you will have to do?