I've been using my trusty Canon XL-2 for several years and am thinking of upgrading to one of the newer Canon cams that use the .mxf format. Will 8.0 work with this format? Thanks in advance.
Vegas Pro 8.0c could be a stumbling block.
You should be upgrading to at least Version 13 latest build.
Canon MXF camera files are simply MPEG2 files wrapped - they will read just fine - but remember you use the camera included software to extract the correct file structure to your hard-drive first. The latest versions of VegasPro read just fine - however the only correct native render out of an MXF container is the Sony MXF internal codec - again just a flavor of Mpeg2 wrapped-in. Sony MXF is compatible with writing for DVDAPro or use as digital intermediate in a workflow. Generally otherwise not a typical used codec.