Which should I be using? I have an HMC-150 and 7D. I have been using the default which is DV, but I looked in the drop box and see HDV. My projects will almost always be High Defintion so should I put it on HDV, or is that just for an HDV format like MPEG2.

If I am understanding you correctly:
That pull down menu is for firewire capture from tape.
It looks like you are using file based cameras- no "capture" is necessary, you simply transfer the files from the camera to your computer.
It doesn't matter what the "capture" settings are because it is not a feature that you use with these cameras.