How does the HDSDI output of the XHG1 compare to the inbuilt HDV recorder? Would it be worthwhile to use a NanoFlash on the XHG1? Does the XHG1's HDSDI port output a significantly better image to justify using a NanoFlash?

THe Nanoflash can record the best quality that the camera can produce. HDV quality does not compare but it depends what you want from your pictures and what you do with them.

Does the XHG1's HDSDI port output a significantly better image to justify using a NanoFlash?

Massive yes to the quality bit, and a maybe to the justification bit, as Bruce said it depends what you want to do with the material really.

Steve

You will notice a massive difference if you are doing any sort of keying / green screen work. Remember that HDV is 4:2:0 colour space whereas Nano capture can be 4:2:2 and also you can set it up as i frame as opposed to long gop which makes a big diff too.