Try reducing the bit rate in the render template to 21,999,000 bps.

Anything over that doesn't recognize that QSV is available on my 17 3770k. You can test this by looking at the System tab (Check GPU button) on the render template as you change the bit rate value.

I am using the MVC 1280x720-60p 25 MBPS Video stream. Changed the bit rate to much lower - infact tried even 10 Mbps - still the same result.

When I go to the System Tab and click on Check GPU I get a message - No GPU Enabled.

I have tried with both the following settings under Options -> Preferences -> Video -> GPU Acceleration of video processing -> Intel(R) Corporation HD4600 as well as tried turning it off and restarting the application.

Is there any setting I may have missed?

Check bios settings, try a different video adapter driver.

Stranger things have happened before with new video adapters. Illustrative, but not likely to be a workable driver for your new system. Look for a newer (or older driver) and see if you get better results.

Mostly, I just use CPU only.

I'm having a hard time finding the "Sony MVC 1280x720 25 MBPS" render template. My Sony render templates don't have 25 mbps titles. The Mainconcept render templates do start with 25 mbps but they don't support Quick Sync, only Open CL and CUDA. Are you sure you're using a Sony render template?

Is this a 3D thing? I don't have any 3D media on my timeline so the render options presented could be different than what you are offered.

You have to set the PC to boot from the quicksync
If you are booting from an nvidia or other graphic card quick sync won't work
If you do that all will work but beware if using new blue titler that will then stop because you don't have enough memory

Did you install the Intel video driver, or just use the ones that came with Windows?

Use the Intel.

I never let windows install or update my drivers
My intel drivers were on the motherboard manufacturers disk
If I need graphic card drivers I go to manufacturers site
Most updates I find only benefit games which are of no interest to me

1. I dont have any other graphics cards in the system
2. Verified the BIOS settings and iGPU is the only graphics device set.
3. Installed latest drivers.

I was able to get Quick Sync working in a few templates - but not in the one I want - the 3D MVC 1280x720 60p 25MBPS one. Even changed the bit rate to 21.999, even 10Mbps, still no cigar. I need to render 6 events - each timeline is over 2.5 hours long and it takes about 9 hours to render using CPU only. After having made a significant investment in this high-end CPU/motherboard, I expect Vegas to cut down the render time.

Quick sync only works on a few templates
It therefore I would suggest not a PC problem