Hi Amanda, Your son is right. Vegas 6 is extremely old and doesn't support the newer formats that sites like YouTube uses. Also, I would never buy any hardware (or software for that matter) from Pinnacle. All of their hard is proprietary and only works with their software which is very buggy. I've owned Pinnacle hardware and software and would never recommend them to a friend.
I would recommend that you get him the latest version of Vegas
Movie Studio HD 11 and a Hauppauge
HD PVR. The HD PVR will capture HD from the Xbox into the AVCHD format which you can then edit with Movie Studio HD 11 and upload to YouTube using the "Internet..." MPEG4 AVC/H.264 templates. It should all work rather seamlessly. I own this device and it's also good for recording HD programming from cable TV like a DVR/VCR. ;-)
~jr
http://www.johnrofrano.com
http://www.vasst.com
