I had the same issue and went through it with NewBlue support.
In my case, New Blue was not recognizing my GPU graphics card, even though Vegas was.
Close Vegas.
In the Vegas Preferences/Video tab, select “GPU acceleration of video processing”, and from the dropdown make sure your GPU enabled card is selected. This alone does not fix the problem.
In my case, using NVIDIA, start up the NVIDIA control panel, go to Manage 3d settings, and then the Program Settings tab. On the “Select a program to customize option”, from the drop-down select “vegas110.exe. On the “Select the preferred graphics processor for this program” option, I select “High-performance NVIDIA processor”.
Save the settings, start up Vegas and you should be good to go.
Terry