I have shoot coming up and a client requested that we shoot in PAL format. No problem as I own a Sony Z1! So i set it in 50i mode and shoot. However, we do want to use a secondary camera for additional broll (its a canon xlh1) and i know that doesn't shoot PAL unless you pay canon to convert it (which i dont want to do). The client doens't need us to edit the shoot, so, i'm wondering, is there anyway we can get the Canon's footage converted to pal that is relatively inexpensive and easy to do? Any thoughts/feedback appreciated!

You might want to check out Atlantis from DVFilm.
It has been recommended several times earlier.
Not sure if it works with HD, but it is reportedly giving good results with SD.

http://www.dvfilm.com/atlantis/

Try and Rent another Z1 it will match better

atlantsi does the good job, but the result is bit different from original footage, i guess it exports only progressive files

Procoder does a decent job (for the price) transcoding NTSC to PAL DV-AVI or vice versa.