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Bad quality with H264 codec on Sony Vegas 12
So I originally tried to open my video (recorded from H264 codec) with Sony Vegas Pro 12 but it did not allow me to open it. Then I downloaded the codec pack from this website (https://sourceforge.net/projects/x264vfw/?source=typ_redirect) and Vegas finally allowed me to open the video on the editor. However, the problem was, my quality was severely ugly.
Here is the original frame image quality.

Here is the one that is previewed on vegas (also rendered).
Normally when I try to render Vegas using M-JPEG codec, it works and edits very fine. However, even with installing the codec pack, it still gives problems. Anyone know any good H264 codec packs to download for Vegas 12?
EDIT: While both images are slightly different as I took a screenshot of the frame a few MS apart, you clearly may notice that the 2nd image has a colour fade/blur.
