I have tried Vegas 4 for some time now, and still haven't been able to encode MPEG2 in any good quality. Every time the picture get's unsharp or blurred if you like. I use MPEG2 streams recorded from a DVB card as source material. As a comparison, I have tried both TMPG encoder and MainActor (which also uses the MC encoder), both giving very good results when it comes to picture quality. But with Vegas 4, I just can't get it right. I really need Vegas 4 for it's excellent editing functions and for the built in AC3 encoder.
What am I doing wrong?