“As I first learned Vegas can’t import a VOB file…”
Have you tried the “File – Import – DVD Camcorder Disc”feature?
It was originally designed for miniDVD discs but works just as well with full-sized DVDs. The key is be patient while the files load in.
As long as the original transfer from VHS to DVD looks OK, the new DVD should be OK as well. Try one and see if the quality is up to your expectations.
If all you want to do is cut out a few scenes, look at Womble and VideoReDo as they allow you to do this without re-encoding (which is what happens with Vegas).