Still got trouble doing this trick. I mean – VirtualDub works fine I guess. When I resave my Canon-recorded AVI-file using “Full processing mode” Sony Vegas accepts it but because the resaved file is so big (440 MB for just 2 minutes) it takes forever to render it. And my machine isn’t even that old (1,5 GB RAM).
When I try resaving it in “Direct stream mode” I still only get the sound from video when I try to import it in Vegas.