I've only got Sony Vegas, an older version (v6). I made a video which I exported AVI format and its a few Gigabytes in filesize.
This obviously is a bit too big to upload to youtube and youtube will crunch it down anyway.
What is the best quality (compressed) format that is most appropriate to export from Sony Vegas for youtube?
My Vegas does WMV, MOV (quicktime 6), MPG2.
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I can't remember if Vegas 6 uses WMV8 or WMV9, but since it doesn't offer H.264 encoding, you'll get decent results using the WMV encoding. I went from Vegas 4 to Vegas 7, so I'm not sure the exact settings in Vegas 6. You should still be able to do 1280x720 at around 3Mbps for good quality vs. file size (assuming you are rendering in widescreen HD).
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