There isn't a wrong way, which is one of the nice things about Vegas Video, almost everything can be done several different ways. Since VV3 is non destructive to your source files perhaps a better way would be drop all your scenes on the timeline as a first step, or just drop them one at a time if your prefer.

I wouldn't render anything until you're done editing your entire project, but that's just my method. I think doing it that way tends to lead to a more fluid editing experience because you'll be able to see your project take shape in front of your eyes.

Save your project often. The .veg file contains all the information VV3 needs to restore your project to what ever point you left off even if it spans hundreds of source files. I wouldn't create a bunch of intermediate files, no need really. In fact that may slow you down.

Have you tried the excellent tutorial? That slowly walks you through the basic steps you'll use most often. I wouldn't worry about file sizes, rendering formats until you're done. Just concentrate on editing and play back the result from the timeline as you go along.

What I like to do is drop all the video I initially expect to include as raw source files in a project on the timeline as a first step regardless how many. I then go to the beginning and play the entire run making rough cuts of what I know for sure I don't want. This usually reduces the initial project size by anywhere from 15 to 40%, sometimes more. As you gain experience I think you tend to be more critical of what should stay and what you toss out. The end result is a crisper less boring video.

That done, I go back to square one and do it again, this time doing any fine tuning of each scene (event) again working through the whole project. I try to avoid skipping around, all though you can if you want to. I probably will do any shuffeling of scenes at this point, also speeding up or slowing down whatever needs it.

Now back to the beginning again, I apply the FX filters I need, add any extra video tracks, overlays, text, special effects, cross fades, transitions envelopes and so on.

Back again to the beginning, add any audio for background, voice overs, special effects, then see how it looks from the start then play it again doing any last minute tweaking. Then I set the whole project aside for at least a couple days. Basically because I'm sick of looking at it by this time, so if I don't do anything with it for at least 48 hours, the next time I open the project I see it in a more critical eye and I'm far less to do something just to get done with it. If possible have one or two other people look at it. Adjust as needed, now finally do your rendering. <wink>