Thanks John. Rendering mp4 files from Sony HX1 to AVI with Vegas 8 did work to stop jumping, but took much time and trebled size of file.
On the Internet I found ‘Leawo Free AVI Converter’. It does a great job quickly, making similar sized files, of good quality when you choose to convert mp4 to XviD.avi which can then be used in Vegas 8 for editing. Leawo also will convert a batch of files. So it is cheap and helpful work around for Sony camera users who want to use Sony Vegas to edit.
Alan