.aaf Vegas to AE inserted frames

I'm not a Vegas user but I was given a Vegas project (pro 8.0)to color correct. I pretty quickly decided that I REALLY didn't want to do the correction in Vegas. The project is a play, shot on three cameras that need to be matched. It was edited using the switcher in Vegas, so I went through and actually cut where vegas had just lowered the opacity, and then saved the project as an Avid Legacy .aaf and imported it into AE cs4. In AE each cut shows as a seperate later, but AE seems to have taken and inserted single frames of the beginning of the original hour long clips. The wacky frames are easily spotted because they are off-set from rest, but I can't just go through and delete them, because I have to extend the previous cut by a frame to fill in the spot. SUPER time consuming. Is there a better way I should have done this? I'm currently rendering each track out of Vegas, which is going to make some very sizable files (total of 6 hours uncompressed footage).

Screen shot of my track. Not sure if its actually useful or not.

That was my original plan. And please, if anyone has a suggestion I would love to hear it. I was able to get the files down to a reasonable size using lagarith, but the guy who edited said he couldn't get vegas to open the files. Everything else I tried gave me either unmanagable file sizes, or I wasn't sure that we weren't going to get compression issues. Final output is a DVD for what its worth.

I'm not at my editing machine now, but I may give importing the lagarith files a try on my machine, since I know its installed properly, although I noticed that Vegas doesn't want to let me render out using the codec so perhaps its not supported?

The originals are AVCHD .m2t files. I did try rendering them back to .m2t's at the highest quality I could muster and the quality was total crap. I've never used Cineform but I'll definitly be checkign it out, thanks. I'm an Adobe user BECAUSE I do alot of work in AE so this whole workflow thing has had me wasting a TON of time. I should be getting a fair ammount of work from this guy so I NEED to hammer out a better work flow, or give in and learn Vegas, but I really wasn't impressed with the color correction system, and I really do prefer the Premiere multi cam switcher to what I've experienced with the Vegas one.

John, Thank you so much, cineform has MOSTLY been very helpful. If you wouldn't mind answering one SUPER basic question for me confirming my work flow I would really appreciate it. As I'm reading everything from Cineform they talk about just editing your masters, so I want to make sure I'm doing this the best way possible. I've converted all my .m2t files to cineform .avi files using HDLink. I then import them to after effects cs5, do my color correction, and then render them back out as cineform .avi's, which I us to replace the original uncorrected files that were used in the Vegas 8 edit. Right?

Side note:I've had a TON of HDLink crashes trying to convert all this footage (about 6 hours worth) and I think I've finally found that my CPU was getting too hot. I turned all my fans up on my Antec case and so far no crashes, and the core temps are staying below 80c.

Thanks John! I built this computer a few months ago, and I haven't had a problem with long AE or Premiere renders, but turning up the variable fans on the case seems to have solved my crash issue (heat sink is pretty hefty), and Cineform seems to have solved our workflow issue. Woo! Time to be productive again.