I’m trying to create AVCHD proxy files for editing (mpeg2 or avi) but I am limited to the number of video files I can import into my project (less than 30 or the equivalent to 1.5-2 hours of video). Even in projects that are Stereo and not 5.1 Surround, it appears that Vegas is unable to decode them on the fly. Every file I bring into the project I can see using up a portion of my 4 Gigs of RAM. When I reach somewhere near 78% RAM used I get an error message and the program closes. In the past I have had some extremely large projects in SD and HD and never had a problem but all those projects were imported from DV or HDV tape cameras through Vegas. I can only assume that when Vegas Movie Studio pulled the footage off the tapes it saved it in a compression format that it could work with on the fly or using minimal RAM.

I am really not excited about converting AVCHD to AVI Proxy files on the timeline, one clip at a time, within Vegas Movie Studio to get a usable format/codec (as the help menu seems to suggest under "Creating HD Proxy Files"). so can anyone suggest batch a converting method that will give me a file format/codec that Movie Studio likes (doesn't eat up my RAM)?
Computer Info: Dell dual core 6600 @ 2.4 GHz, 4 GB RAM, Vista- 32 Bit Operating System, NVIDIA GeForce 8600 GTS Video Card
Video: AVCHD Files are from a Sony HDR CX550V