[James Redmond] "Thanks Jeff. I installed gspot. It shows that the video codec is installed. so very strange behavior..."
Is the codec a 32-bit codec or 64-bit codec. If it's 32-bit it will never show video in the 64-bit version of Vegas Pro. So even though GSpot says it's installed, it could just be the 32-bit version that's installed.
[James Redmond] "Again when I drop that file on the vegas timeline - no video...."
It could be that Vegas is not expecting that codec in an MXF container although you did say that it worked briefly with the 32-bit version of Vegas which leads me to believe that it may be a 32-bit codec only. I would contact Sony and ask if this camera is supported. You might also want to ask Canon what you have to do to edit this footage with 64-bit applications (i.e., is a proprietary codec needed or not)
~jr
http://www.johnrofrano.com
http://www.vasst.com 
