Ok, I have now played enough with the HG20 and the Pixela to write an "update".
First and foremost, to anyone who is contemplating buying the HG20 for its reputation for Low light performance, GO FOR IT.
I am very critical when it comes to Low light videos, mostly because most of the videos I shoot are Low light (kids) and I can say with confidence that this camera has surpassed any and ALL expectations I had. I am still confused as to how this little thing with the little lens can make such vibrant, crisp and colorful Low light/indoors videos.
2ndly, so far, I have played the videos directly from the camera on my 42" Panny Plasma and on my 106" Dalite Screen via Sanyo Z4 (a 720P projector) and all I can say is that teh results were stellar, especially on the 106" screen where any and all drawbacks in the video shoudl have been obvious. I took a couple of close ups of shrubs, leaves etc in my yard on a sunny day, and the video could easily have been from Discovery HD.
I have also played the video directly from the camera thru the PS3 using a USB cable and everything worked like a charm.
I recently purchased 2 500GB Seagate External drives and the videos are being backed up on the drives. My Core 2 1.87 Laptop with 2 GB of Ram and 256 MB ATI card is making DVDs, Editing via Pixela without a problem, I have only seen the CPU at 83% (highest so far).
Of course, saving and editing 4 GB+ files IS taking a while so I keep those tasks for late night and start the DVD Burn process right before going to bed.
Please let me know if you have any question, I will be happy to answer.
And I woudl like to Thank Everyone on this forum, without this forum I woudl have spent $300 more and bought a Sony (legacy Sony customer), not that there is anything worng with Sony, its just that I am happy to get the same or better results by spending far less money.