ok so I use Vegas Pro 8 to edit video (I personally enjoy it way more than Final Cut). Right now I use the Canon HG10 for a camera. first of all, what would you suggest as the best settings for the camera to get the best possible image ( I know this is a subjective question, but I just want to get some better ideas about camera manipulation (I just shoot in black and white because color on video just looks awful no matter what I do)).

that's the camera question.......... now the software question

the camera produces AVCHD files. I would like to know what the best software settings would be when it comes time to render the video (as well as what I should have set up before I even import the files).

My basic goal with all this is just to have better looking images, because right now I am not satisfied with the visual result of most of my work.

thanks for whatever help you give me (in advance)