Sorry, my mistake – I did actually rendered it to 720p. Following your advice I am now rendering it to QuickTime but why should it be better then losless avi?
There maybe some softness but my main concern is “stutter” in AE camera movement. Actually, it is not as much as stuttering but really extreme motion blur. Whereas in the original AE project and avi render from AE there is a minimal motion blur that makes the camera movement more realistic, when I render vegas timeline to mp4 or mpeg2 the motion blur becomes very exaggerated splitting the text as the camera moves by making it very unpleasant to watch.
After replacing avi render with Quicktime it seems that results with regards to motion blur are only slightly better but not much.
Andrew