Capture Format DV or HDV

Hello:

After searching the help files, I still can't find a definitive answer to a simple question:

When you first start a project in Premiere Pro CS5, this screen appears:

Does the HDV or DV mode only apply if your are actually capturing a video stream through a fire wire or USB port?  In other words, if I'm only importing files that are already in digital format (i.e. m4v), then this setting should not matter.  Correct?

Thanks,