Hi Eileen,
Getting a clean chroma key edge when the original signal is analog composite is practically impossible I'm afraid. Even when we were all using analog, the camera used for a good chroma key was typically feeding out component analog to avoid encoding artifacts. The fact that you are up converting to HD will not be a major problem with the chroma keyer, the NTSC encoded analog signal is the culprit as there is a great deal of chroma aliasing in the edges of a composite signal.
The Sony camera you mentioned can output component but only from a CCU, if you dont have one you might find one inexpensively on ebay. However, the best solution is would be to use a camera with SD or HD SDI output as that is a digital component signal.
#Carbonite