First of all, I never use any “auto” feature of any kind, simply because it makes it’s own decisions as opposed to what I might want to see.
When I applied the Auto Levels filter to an image and then brought it into Vegas, the whites were raised and subsequently clipped shikle the blacks were lowerered and also clipped.
Video is a very different workspace.
Still images have the full luminance range of 0-255 while Vegas deals with a luminance range of 16-235.
I rarely use Photoshop for anything other than scratch and dust removal.
Everything else is done in Vegas in conjunction with a good monitor and the Waveform/Vector monitor.
The first thing I do with all stills is to apply the Secondary Color Corrector FX and choose the Computer RGB to Studio RGB preset.
This corrects the luminance range from 0-255 down to 16-235.
The image appears to be a bit more washed out on a computer monitor but it’s fine on a properly calibrated video monitor.
If any tweaking is needed, then I use the Color Curves and/or the Levels filter to et things where I want them.
VASST has an excellent DVD titled Color Correction in Sony Vegas that I recommend to anyone who’s serious about taking this process to the next level.
For $59, it’s an excellent way to learn the tricks of doing this effectively.