As you know HDV is 1080i interlaced. Well I just downloaded the latest (Cineforms)Aspect HD for Premiire Pro and it can convert you HDV 1080 (50i) m2t footage as it comes into the computer to a 1080p (progressvie) avi file. You can then edit in a progressive timeline in realtime with effects and graphics.
It will even pull down a 1080 (60i) to 24p.
I'll see if it can convert a HDV PAL to HDV NTSC smoothly.
Check it out...