I just noticed that Ulead MediaStudio Pro 8 and their less expensive Videostudio will work with mt2 files directly. If you cut together a bunch of mt2 files, either one will do a smartrender whenenever possible saving both time and better quality. I believe they both use proxy files as you edit, so I believe that the difference would be more in output quality than workflow (as the smartrender would save a generation of decompression/recompression). Native HDV support is accomplished with a plugin on both programs. Why can't Vegas do this?