I have a documentary that is 80% SD and 20% HD being edited in a 1080/23.976p timeline in MC3.  What is the absolutely optimal way to online, grade, color correct and output this to an HD master (for film-out and everything else) so I get the best possible up-rez of the SD footage?

Do I need to re-capture footage via an uprez with a Terranex or something like this?  Or can I output what I have straight from the timeline in DS?  All SD was captured via firewire at full rez and the HD using the highest flavor of DNxHD.

Is the SD material film originated, or are they just forcing a capture at 24 and throwing away frames?

In a perfect world, you would pull selects, or make reels of all the SD stuff that you used and run it through an Alchemist to make 23.98 masters.  Then you would recapture and overcut that material into the offline.  Then reconform everything in 23.98 in DS.

You can re-capture through a teranex, but there will be a big frame offset that you will have to figure out and account for it.  Plan to spend lots of time slipping shots.

If you are serioulsy looking at doing a film out, then please use 10bit Uncompressed, not DNx.  You will need to hang on to all the color depth you can for the film grade, and your SD material will already be stressed having been resized.

No, the SD material is SD material - video shot "23.976p advanced mode (2:3:3:2)" on Canon XL2 (I believe Avid pulls the progressive frames from the 29.97 signal without throwing away any frames).  The HD is XDCAM-EX - 1080/23.976p.  Does this make things clearer?  Yes, serious on the filmout but want a HD master to able to use in all directions.

It sounds like you are 24fps based in all the SD stuff.  That is good. 

Can the tape from the XL2 be played in any kind of deck that alos uprezzes (like the Panasonic 1700)?

Still use 10bit uncompressed...

Not sure on the deck (but isn't the Panasonic 1700 a 720p deck?).

So you suggest that I do re-capture everything on the timeline at 10-bit uncompressed 1080p HD?

I'm not an online editor and this is more of a DIY project out of necessity....can you be more explicit about the precise workflow you are recommending for this?  Thanks again.

The 1700 is a multi-format DVCPRO HD deck that can play back mini-DV tapes (with a special cartridge adapter) and uprez them to some HD formats.  I'm not familiar enough with Canon to know what it records and where it can play back.  I know there are/were some incompatibility issues with Canon HDV stuff.

As far as the resolution, you want to work in as high a resolution as possible, especially if you are considering a film out.  People will notice if it looks terrible, but no one will ever say 'that looks too good.  Can we make it look lower res?'.