Guys, if you have pinncale products installed and Vegas use its DV codec to decode AVI files, then all in a sudden you will see really shitty pixelated pictures in Vegas!! Does anybody notice this before?
To avoid this, you have to enable "Ignore third party codec" in the preferences.
I discovered a serious bug in Pinnacle's DV codec a couple of years ago. After I was quite vocal about it on the Internet, they finally admitted the bug existed in the DV codec used in all their products. It had to do with the colorspace conversion routines. They eventually did fix it, but their DV codec still doesn't look anywhere near as good as the Sonic Foundry or Main Concept DV codecs.
My advice has been (and still is) stay as far away from Pinnacle products as possible.