As far as I can tell (and this is in Movie Studio 10) the dynamic RAM preview system caches all frames that get rendered to the preview window/device. So, playing a short selection of your project in loop mode will go a bit sluggish at first, but the dynamic RAM preview cache will accumulate rendered frames and after a couple of loops, the selection will play smoothly. Each pass will add as many frames to the cache as can be rendered in real time, and the rendered frames from the previous passes will be used to speed up playback. This happens in normal (non-loop) playback too.
If you do a “build dynamic RAM preview” then loop the selection, it should immediately play smoothly because you’ve forced Vegas to do a non-realtime render of ALL selected frames.
Any normal preview playback while editing adds to the dynamic preview cache but, as soon as you make an edit, the corresponding cache contents become obsolete and get binned, forcing re-render of that part of the timeline when you preview.
If you set the cache size to zero, all previewing will be done in real-time, or as fast as the CPU allows. Complex sections may be stuttery/sluggish because the renderer can’t keep up. If you set the cache to a modest value (say 256MB) you’ll only be able to create a small dynamic RAM preview (at 256MB at 1/4 size preview, I got a max of 20secs). If you set the cache size too big, Vegas sucks up RAM that would otherwise be used for media and other apps.
I noticed that if I try to create too large a RAM preview, the selection gets shortened and the preview doesn’t always play properly – as if the preview cache gets lost/corrupted and I’m back with not-so-realtime preview. Maybe that’s what Chloe was seeing. Forcing Vegas to build a new dynamic RAM preview (with the adjusted selection) usually sorts it out.