Is there a way to export a still image sequence in Vegas...capturing stills from preview (even at full project size) still looks like less quality. Or...is does displaying preview at full image size mean its exactly the same resolution as well?
If you capture with preview set to best quality, and with the project properties set correctly, you should get 720x480 resolution (from DV). There are scripts over in the Script forum to help you do this at a touch of a button.