The blurring doesn't happen now, but I am still having the problem of no video appearing when Vegas has rendered it. I have now noticed however that this only happens when I render it as uncompressed with Vegas, as a video is present in other settings. Also, even though it is uncompressed, should a 30 second file really be 4GB? Even in fraps the video file I was using was only 500mb.

why not? In High Quality with effects applied the video can get quite heavy

I've noticed now that you can actually save it with Xvid directly in Vegas, which works for me. However, the video is still not appearing in widescreen despite being set to 16:9 in the project settings?

Quote from Start Wars :

I've noticed now that you can actually save it with Xvid directly in Vegas, which works for me. However, the video is still not appearing in widescreen despite being set to 16:9 in the project settings?

I get that when I try to play widescreen videos in WinAmp. They appear squeezed a bit... if that's what you mean.

Yes, but it looks like it is in 4:3 when I set it to 16:9.

Here is what I am referring to, it looks like this:

http://img293.imageshack.us/img293/1072/92952419yq8.jpg

When it should look like this:

http://img247.imageshack.us/img247/4928/52024631ww5.jpg

try using a different video player

VLC Player.... play's everything.

I have tried this, but it still looks the same The video quality is fine, it is just the aspect ratio that is wrong.

Try going to vegas properties-project settings and change width and height.