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Hi, Andy! Thanks for being such an "avid" reader!
You should be able to split any streaming video by content. So, if by HD you mean HDV (hi-def video) and not HD (hard drive camcorder), then yes you should be able to.
You can split it by content as you're capturing or, after captured, you can right-click on the video in the Project Media panel and split it by content after the fact.
On the other hand, since you're asking about converting, I'm wondering if you are talking about hi-def video -- since you can work with HDV files natively in versions 4 or 7.
Yes I was meaning High Definition video. I am interested in your thoughts on the "best" way of converting HiDef video into DV-AVI as your book etc. implies that this is a better approach than just reading the video in from tape straight into PE.
That's on page 28, Andy! ;)
Every HDV camcorder has the ability to "downsample" its output, and you can capture the DV output over FireWire as DV-AVIs, just as if it's coming from a miniDV camcorder. (Though the quality is usually much better than miniDV. Usually broadcast quality DV!)