This problem is happening because of the interlaced nature of video vs the progressive nature of stills. If your entire project is a photo montage of pictures then I would set your project up using a progressive template. It looks like you might be using standard definition 4:3 DV in which case I would use the NTSC DV 24p (720×480, 23.976 fps) project template. Then render to MPEG2 using the DVD Architect 24p NTSC video stream render template. This will avoid interlacing.
I would also resize the images to exactly twice the resolution of your project in square pixels. So if you are using NTSC DV 720×480 with a pixel aspect ratio of 0.9091, resize the images to 1310×960 (which is 720 * 0.9091 = 655 and 655 * 2 = 1310). Then I would make sure the Reduce Interlace Flicker option is on all still image events. If that doesn’t reduce it enough, I would add slight Gaussian Blur of 0.002 on the images in Vegas.
This is a common problem and there is no easy solution, but if you can keep the project progressive and not expect Vegas to resize very large images too much, you can reduce the problem significantly.
~jr
http://www.johnrofrano.com
http://www.vasst.com