I converted some 60i footage into Offline PhotoJPEG, and I can see the difference between the high res clip and it. Which JPEG setting is the lossless version I've heard so much about on this forum.

http://www.hdvxdv.com, http://www.squared5.com/

--Download the trial of HDVxDV,
--Download MPEG Streamclip
--Capture m2t's in HDVxDV
--Open MPEG Streamclip
--Drop your m2t's into the main window. Go to "Export Quicktime" and choose PhotoJPEG, drag the slider to the right to be "75% qualtiy". Choose the frame size of 1920x1080. You can also choose 100% quality just to check the differences.
--Create a custom setup in FCP to work with PhotoJPEG 1080i clips. Make sure the timeline is set to work with a 1920x1080 frame size.
--Import clips into FCP and edit away.

This is the only way you'll get usable 24F captures. FCP won't capture 24F AFIK. There's also a utility called DVHS Cap that can supposedly capture 24F, but I havent' tried it.

I use DVHSCap to capture 24F footage, and it works very well. I then take the 24F .m2t into MPEG Streamclip and do my conversions there.

I use DVHSCap to capture 24F footage, and it works very well. I then take the 24F .m2t into MPEG Streamclip and do my conversions there.

There seems to be one critical limitation to DVHSCap: as far as I've been able to determine, DVHSCap is unable to capture time code. I will do some more testing tomorrow, also involving HDVxDV, and will report what I find...

Ok... I gotta ask this- what happens to the audio when you change it to photojpeg? Is it capable of using audio tracks, or do you need to have them seperate?

Typically your audio is converted to 16bit 48khz uncompressed. It's integrated with the video.