Hugh used this set up on howard groenemayer - and i think he used a similar system on recent snow patrol shows.
it does indeed- i spent a day at xl video testing this - i hassled and cajoled zandar about this several months ago - and decklink ( and i got my friends to hassle them as well )...But the Zandar box only outputs 1080 progressive. The Decklink Intensity card needs 1080 interlaced.
( the decklink intensity does work with my Sony V1P progressive scan camera at 1080i )
decklink never replied- zandar said it needed hardware changes.
why they chose incompatible formats is beyond me.
in the end i believe hugh used 720p input and output from zandar-
ask him.
this is a very complex subject. one that you will need support from your friendly video company on-
and they wont know the answer either.