To make sure I’m clear on this, donatello, are you saying that if I were to uninstall xvid I would be able to load Xvid video into Vegas utilizing Divx? Is there some way of suppressing Vegas’ awareness of the Xvid codec to accomplish the same thing?
Another program that’s useful for dealing with Xvid/VBR mp3 is Avidemux. With it you can choose to avoid reencoding video by selecting copy and just reencode the sound to a wav.