Actually youre right, it did take the png sequence but it was just that…a sequence of a ton of frames of video that were seconds long (each frame capture) so it was still unusable..
Wow thanks for the quick reply. This is my first time posting to CC since referring to it since its inception.
So while you idea is an awesome one, and I did try that, Vegas 9 doesnt accept png files. Otherwise what a great work around.