Rendering problems. Errors

Hello CC dwellers!

I have a problem rendering my movies. Here's some detail as to what I'm doing. I'm trying to post HD videos on youtube.com using their guidelines :

VIDEO 1280 x 720 (16x9 HD) codec H.264, mpeg-2 or mpeg-4
AUDIO: MP3 or AAC 44.1 khz stereo

-I have an Aiptek Action HD camcorder. Records the 1280 x 720 @ 60fps

-I also use Sony Vegas Movie Studio Platinum Pro 9 build 92 (patch notes say .MOV files from Aiptek Cameras NOT supported)

-So I copy the .MOV files to my computer and convert using AVS Video Converter to make an HD Video 720p .AVI (divx and xvid compatible).

-Open Vegas and edit as normal.

When I'm done I choose to render Quicktime 7 (with Default Template) and I get 1 of 2 errors. #1 [An error occured while converting with a codec] and if I try a second time without sutting down Vegas I get this: [The file cannot be opened because some other application already has it open]

I purchased Quicktime 7 PRO thinking that was the solution. And I still have the same problem.

I need to keep the file under 2G for youtube.com so I'm asking if there's another way or format for me to render the HD and not lose quality. I have Divx 7 converter but when I tried to render the AVI it said the audio must be AAC. I've only seen that audio option under the Quicktime 7 option so I'm basically stuck. I really don't want to buy more software but any help is appreciated!

-Lester Bursley