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Possible Vegas rendering bug — easy solution
Last week I was able to work around rendering problems on an HDV 720-30P project that contained avi files, jpgs etc. by rendering each element to 720-30P and removing extranious media from the project. I had thought that the overall size of the project was causing render problems but it turns out that there is a known issue per Matt at Sony.
Here is what solved the problem in Vegas Pro 8.0c:
Options>Preferences>General>(very last radio button)”Enable no-recompress long-GOP rendering.
If you experience rendering issues try unchecking this button.
If you are making cuts only edits without any graphics or effects then you can leave it checked.
BTW, I tried every other solution under the sun on four different systems that are all powerful and fast enough to handle the rendering job and this was the only trick that solved the problem.