I haven't heard of a D7, but don't throw out the idea of still cameras..... Check out the Canon 5D Mark II or the 1D Mark IV. I know Nikon makes some cameras with video as well, though I'm not sure which models or how they stack up feature/price wise.
The 5D Mark II lets you use all of Canon's lens lineup to shoot to a 35mm sensor at 1080p resolution. That's not too shabby!
Oh, you say, the compression. The compression isn't any worse than you'd be getting off HDV or any kind of a AVCREC format going to a consumer HD camera, and you can't discount the quality loss that you're going to see with a 35 adapter, unless you're going to spend $10,000 on it.
I'm not sure (really, not sure) how much a Red Rock costs, but I seem to remember it being quite expensive. Check out the Letus 35 adapter while you're at it. I've used it for some films and it's turned out beautifully.