^^Update. I no longer use that software from the link.
Following something similar to how benesotor did his workflow thread (https://photography-on-the.net/forum/showthread.php?t=826550) I figured maybe pictures is easier for people that a bunch of text. So here is my 7D to Vegas workflow for 95% of my stuff. This isn't to say this is THE was of doing things. I'm just saying this is what works for me.
First off I transcode my files to a more editing friendly file format. I use a free software called MPEG Streamclip. You can download it here http://www.squared5.com/
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Open MPEG Streamclip...
Go to File/Open Files to choose you clip you'd like to transcode....
Once you've opened your file you are now ready to transcode. You can chose different files but I mainly use Export to AVI as it just works for me...
Once you've decided on a file format you want to TC down to you can chose numerous options for your final output....
You can also select various codecs for your compression....
Once the file finishes rendering from MPEG Streamclip then fire up Sony Vegas Pro 9...
You should have a project file you set up for most of your videos. In my case mine is set to HDV 720 24p as that is what I render at. This is how my project file is setup....
After I'm done editing I render out as Sony AVC which is MP4 file format. I typically leave it set to default and to use my project settings. There are several other formats you can choose from and settings that work best for you...
Hope that helps to at least get you started.