Every since I started using Vegas, I've been totally baffled by the Project Properties. At one time there was a post here with differing views of how it worked., Dozens of folks here participated in that discussion. Now, I can't find that post.
The manual is completely non-specific on it's use............other than making previews smoother. I know I'm beating this to death, but I can't find anything that indicates that Project Properties affects the way Vegas processes the video.
I'll take any comments or links that will (hopefully) help me get a grasp of "Project Properties" and separately the infamous "Match Media" work.
Reference:
http://www.sonycreativesoftware.com/forums/showmessage.asp?messageID=933113
Mike