Thought i would make a mention that Vegas imports mepg files just fine if they are program stream - though there is a slight bug with CCE encoded file import ..

if you import a mpeg into vegas that was encoded with CCE and check media properties - you will see it is marked as top field first ..

This is normally ok - but if the source was DV in CCE , CCE will (if you remembered to set bottom field first as a 1) offset the first line and encode it correctly but mark it as top field

if you play it on your pc in the preview window it will look fine but print to tape (DV) and it will look bad on your TV ..

You would think that just by setting the field order in media properties to bottom field would fix the problem but at that point the image is out once more still ...

you would then think to get smart and use the virtual dub plug in and then select a filter to either swap field or reverse field order would fix it .. it doesnt ... its out of phase and causes a image problem (i dont know why but using swap field cause the edges to lose smooth done this way) ...

THE fix is pretty easy though - Get the main concept DV codec and install it -> load the mpeg into virtualdub mod and set compression to the main concept dv codec , fast is ok in config and dont change anything else in settings..
resave your mpeg out as AVI (DV) and load that avi into Vegas ....

it will be perfect AND it looks even better done this way ! ....