I made several attempts to correct my problem inside Vegas 4, but could not get it to work. I found a KB articles suggesting changing the audio sample rate, but that didn't work for me.
I was finally able to solve my problem by rendering the orginial MPEG2 file to a DV AVI file using ShowBiz (came with my DVD burner), importing the AVI file into Vegas 4, editing and rendering back into MPEG2. Not a very convenient method, but it works. Encoding to MPEG2 inside ShowBiz also did not have the sync problem. It looks like ShowBiz uses the GoMotion MPEG2 codec.
For my situation, the source media looked it it may have dropped a few frames of video, but the AV was in sync during original playback and in the preview. It was only during rendering that the AV got out of sync.