Hello. I'm a new video user to V5. I've been using Vegas for audio for years but am only now switching over completely. I'm really liking this software but am having some problem with the subclip feature.

Upon selecting a region in a event on the timeline and creating a subclip I'm getting an error message something like, "Vegas can't create the audio proxy file." A subclip is created in the media pool but it is a duplicate of the original clip, not a trimmed event.

Any suggestions regarding what the problem could be?

Also, I notice that when dragging an MPEG-2 file into the timeline the audio for the associated file does not come into the track list as well? Audio is encoded as AC3. Perhaps this format can't be imported?

Thanks for any help.