I agree with several posts on here, camera will be fine, but depends on the use and level of production.
The SD vs DVD argument to me is worthless.. saying HD is waste... HD gives you more latitude with chroma and luma information due to its higher resolution.. which can aid in post production/color correct.. again, only if your production calls for it.
I've worked on plenty of projects where they say at the beginning we are delivering in SD/DVDs.. so we shoot and post in SD.. then afterwards the clients asks for HD versions/masters.. OOPS..
If you have a choice between an SD workflow vs. HD workflow.. I'd choose HD.. but if you are being offered that camera for free for this project, go for it!