I'm on Windows XP Home edition, Pentium IV 2 GHz. When displaying some mpeg files on the video track, vegas gets xtremely sluggish. It eventually settles down, but when I click on vegas it again it will peg my disk and memory pages perfmon counters. This goes on for hours.
I have had the same problem, but it got much better after upgrading to VV3.0c
It also depends on what kind of GOP-sequence that is used in your MPEG2-files. Longer distance between I-frames (keyframes) slows any editing software down.
VV3.0a was unable to read my I-frame only MPEG2-captures. VV3.0c reads them, but still quite slow. I do not understand why, because I-frame only MPEG2 should behave just like MJPEG.