There's a note at Sony's Mini Website in the Functions page, under the Recording, Playback and Down Conversion Formats Table
http://bssc.sel.sony.com/BroadcastandBusiness/minisites/HDV1080/HVR-V1U/functions.html
that states:
Edge crop mode form the i.LINK connector will be available by a firmware upgrade. For details, please contact your nearest Sony office or authorized dealer.
Does anyone know if this upgrade is available and where to get it? On my 3:4 DV projects I would like to shoot in HDV wide screen and downconvert using edge crop instead of squeeze. I can get the edge crop via Analog Component, but would rather stay in the digital domain. Thanks!

The firmware upgrade is available. There may be a cost for the labour. I would call Sony BSSC they should be able to help you.

Thanks Craig. I called Sony Service in New Jersey today and they told me the update would not be available until the end of the year. The service rep said it would be available as a download to be installed via the USB port.

Oh. Weird. Sorry about that. I heard it was already available.

Good news though about it being something you can do yourself through the USB port however. :)

Is there any info as to what other changes are included with this firmware update?

Sorry, but I didn't think to ask.

I would love to loose the insert tape flashing icon in the center of my screen when I'm using the HR60.

Is there any info as to what other changes are included with this firmware update?

The edge crop modification was carried out to my PAL V1E in May this year by Sony Prime Support here in the UK when I sent it in because it did not work properly with some Lanc controllers (inc Sony's own).

They told me a service bulletin had been recently issued for the Lanc problem but was superseded by the new edge crop modification which they had done.

So the cam now works with the Sony RM1BP Lanc as well as having the edge crop feature. I have not spotted any other change to the specification.