I know this is an old thread, however I encountered the red screen on death plenty of times and have found a solution.
Its not a cheap solution, however I found running Sony Vegas 64bit on 64bit chipset with 4GB RAM works flawlessy.
I tried various techniques to resolve the red screen, but nothing worked. Eventually and reluctantly I attempted 64bit and works perfectly. I haven’t encountered a red screen since.
So if you are serious about using Vegas, bite the bullet stop wasting your time with 32bit, go 64bit.