hv20, editing to get best possible output quality

Hey,
I'm new to the camcorder scene, this is my first camcorder (canon hv20) as well as my first experience with editing video. Currently I am using Vegas 7.0 and finding it pretty simple to use, everything is pretty straight forward. My only concern is what should the workflow be to get the best possible quality, especially when using the hv20 in 24p mode.

My Current workflow is as follows:
- import video using CapDVHS
- edit in vegas 7.0 (project properties set to HDV 1440x1080 60i)
- render as avi best quality (ouput set to 1440x1080 NTSC etc)
(although a test render as .avi would not fullscreen on my 1080p display, it was narrow looking and had black bars on left/right).

then from that make a dvd/hd-dvd etc.

what processes should I take to get the best possible end quality? I guess how would the workflow be different when shooing in regular mode as opposed to 24p?
Also, general camera settings to get the best quality in most conditions?

Thank you very much!

HDV captures at 1440x1080 resolution on tape.
so the original is at 1440x1080 so i'm keeping everything the same resolution. Although the original captured mpg displays fine fullscreen, the rendered avi does not.

Ragnarok,
the 1440x1080 is a HDV tape limitation.

As for best output quality, vegas does a pretty good job at rendering back to high quality mpeg2 after editing....or downsizing and rendering to burn on a SD-DVD. (i was outputting avi instead of mpg before, thus getting black bars on the side).

Although, do not use vegas with vista, as I had the rendering process stop 5 times before it finally finished. The next major vegas version will have vista compatibility.