Help settle an ongoing debate. I have a friend who swears that the H1's 24 F footage is actually recorded at 24 Frames a second, or actually lays down at 29.97, and the progressive look is simply a pulldown trick. Also, I have some footage recorded 24 Frame, and some corresponding DAT sound that was recorded at 29.97. Will I have to have a pulldown done, or should this sync up?

It's laid to tape as true 24P with flags that tell the decoder to add pulldown frames upon output. This is why you can take an HDV 24F clip (JVC 24p m2t's too) into MPEG Streamclip, type in 23.976 for a frame rate, and output a true 24P file easily to any number of codecs. There's no pulldown extraction the software has to perform...the 24 frames are simply there.

So, what about the Audio. Will 29.97 sync up, or does it have to be pulled down to 24 (or 23.97)

I think it'll have to be pulled down to 23.976.

When you do an export from MPEG Streamclip with camera audio, there is no sync issue nor does the audio sound like it's been manipulated in any way at all.