compressing HD footage

Shooting on Sony Z1U. Objective: get big HDV files on both mine and my editor's hard drives. This is a documentary, footage volume is going to be huge, funding is not. (yet!) I cant afford tape duplication, and my editor is wary of having custody of originals. (Plus we dont have an HD deck) But we want him to begin digesting footage asap. Tell me if this could work: In my perfect workflow world, I load my footage into my hard drive, compress it, put as much as will fit on a jump drive, take it to my editor where he loads it and edits from the compressed files on Avid or FCP. Repeat. and repeat. Eventually he gets a rough cut (because the timecodes are not compromised by the compression, right?) and then batch captures from the orignal tapes. Brilliant right? Except for the many many steps in which glitches could occur. But is it possible?
 
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