im new to this DVD burning thing. Tell me if I got this right:
vegas renders the file as an mpeg2 format, then, i use another program like nero to burn that mpeg2 file to a DVD burner? Is this correct?
Yep. You could also render in VV3 to a DV .AVI file, and then use a separate program such as TMPGenC to generate the MPEG-2 from that. Some folks think that TMPGenC generates a better MPEG-2 file than VV3 does, but I would guess that it is pretty subjective.