>
-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).
Vegas doesn't like DivX or XviD either. This is your problem. Use a codec like HuffYUV OR Lagarith. Both of those edit easily in Vegas Movie Studio. In fact, I seem to remember a procedure with Quicktime Pro to allow Vegas to edit your files. Keith Kolbo explains it
here.
~jr
www.johnrofrano.com
www.vasst.com