Which is the better HDV codec in FCP 5, the AIC codec or the HDV codec. I'm having a lot of jaggies and interlacing with AIC and somebody suggested that I use the HDV codec, but the file size of the HDV clips are much smaller that the ones digitized with AIC. Is it possible that the HDV-digitized clips would be better than the AIC-digitized clips even though they have smaller file size and --in my mind-- less information?

if you have 5.0 use the HDV pre set. Just like editing DV. No reason to use the AIC. Looks fine as long as your footage looks fine.