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I just recently purchased a Sony PDW-530. I teach at a college and want to use the camera for student video news production. The camera shoots in 4x3 and 16x9 format. I plan to have students shoot in MPEG IMX and not DVCAM codec and have students upconvert to 720p for the newscast using instantHD fro Red Giant. Has anyone done this and found they had good results, or maybe not so good... Any anecdotes or insights would be appreciated as I haven't been able to test this yet.

Well it will never be as good as real 720p. When you shoot progressive with the 530 there is a bit of a resolution drop compared to interlace, which isn't going to help. It was never designed as a true progressive camera.