How would this compare to cineform???

It doesn't really compare with Cineform. Adobe is just creating a front end capability to put raw m2t files from the XLH1 on the timeline. It is not recommended that you work with this file type if applying any kind of effects, including color correction as it degrades the quality of the image very quickly. Also, because of the structure of the file type and how it is compressed, you would need a major workhorse computer to play the files smoothly. Cineform converts the m2t file into a more robust AVI that will enable the user to apply as many effects as he/she likes without noticeable deterioration of the original image.

Cineform has also made their files extremely efficient and they can run smoothly on the timeline of Premiere on even the most basic of computers.
 
Okay...so cineform is a must have when it comes to HDV production. Got it!

Dijecta, on another note...

I've heard that cineform takes 4:2:0 HDV and converts it into 4:2:2. Is this true/possible?
 
It is possible is that 4:2:0 data can be adaptively smoothed into a 4:2:2 color space resulting in a better looking image. There is an example of this here : http://www.cineform.com/technology/HDVQualityAnalysis051011/HDVQualityAnalysis051011.htm Go to the section called "Original plus Multi-Generation Images - including mark-up for clarity" Look at the pink object on the far left of the test image, and compare the M2T (4:2:0) source versus the 1st generation CineForm file (4:2:2.) The 4:2:2 CineForm data is nicer looking due to the 4:2:0 to 4:2:2 upconversion.
 
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