I want to use an external monitor to view my work, but want to make sure that I am doing this right. I have video ouputs on my computer. Is the external monitor for another computer monitor or any TV with video inputs?
The external monitor function in Vegas is for a TV type monitor, not a computer monitor. You cannot use video outputs from your video card.
You must use a IEEE 1394 (firewire) card output, feed it through a converter (most DV camcorders can do this) to the TV. Be sure to select the external monitor icon on the video preview window.