I have tested an FX1E and a Sony DSR570 and Sony DVW700W (all PAL) side by side in Standard definition to see how they compare and well, IMHO theres not much to choose between any of them. The best is the DVW700 Digibeta but it's only fractionaly better than the DSR570 which is only fractionally better than the FX1. The main difference is in the detail in the dark areas of the images. Highlight handling was very similar for all, sharpness and colour response very similar. The FX1 lens appears to be just a touch soft at the extreme edges. Unless you were comparing side by side on the same monitor I don't think you would be able to tell the difference. The Digibeta also showed more detail in the chroma, for example you could see more detail in the grass in one of my test shots, but thats to be expected as Digibeta is 4:2:2 and DVCAM/DV 4:2:0. But the differences really are very small. As for shooting HD and then downconverting to DV, the pictures look exactly the same as the native SD DV mode so there dosn't appear to be anything to be gained. What I will say is that the FX1 gives incredile bang for your buck and I doubt very much that I will be buying any more SD gear now HDV is truly here.