You do realize that the two products have nothing in common other than the four letters S, O, N, & Y, right? Other than that, they were made by two completely separate companies. They might just as well have been made by Sears and Kodak for all they have in common.
The Sony Mylo uses the same directory structure and has the same h.264 MP4 codec needs as the Sony PSP has. So you just need to export using the Sony PSP 320x240 template (not higher resolution). Then, you need to take that created .mp4 file and place it in your Mylo in a very specific way, as described here, in the "copying to the mylo" section: http://collaborate.extension.org/wiki/HOWTO:_Sony_Mylo_Video_Encoding#Copying_to_the_Mylo
I'm recording the video on the Mylo, it has the capability to record video in the .mp4 format. I save it to the memory stick. I then take the memory stick out and put it in my laptop for editing.
I'm trying to import that video (shot on Mylo) into Vegas. It is unable to read that .mp4 format. I'm trying to understand why that is happening. All my other software can read the Mylo .mp4 video; ie. QT, etc.
That's why I'm asking why can't Vegas read the .mp4?
I do not have the Mylo, but another Sony product - the DSC-T500 camera which records video in mp4 AVCHD 264.
Sony Vegas imports and edits this format well - but only the Platinum version (see http://www.sonycreativesoftware.com/vegaspro/compare )
Do you have the platinum version?
Please shoot for me a 3 second video with the Mylo, and upload it somewhere I can download it. Do NOT re-convert or upload to video services, it must be on a server somewhere, as a file. Send me the link.