Yer im having trouble finding out how to do borders on sony vegas 8.0
e.g. YouTube - Fallen - Beth/Jazz MV
so if anyone would help me it would be greatly appriciated haha -xo.

Do some reading regarding Pan/crop and the use of diffrent tracks. You will have to create one or more tracks thats placed under your "original" videotrack and then Pan/crop your original track so the tracks under that get visable.

This is probobly the worst explanation ever. Sorry, but Iam kinda in a hurry.

There are many ways to skin a rabbit, but what I see is this:
Place same video on three tracks
Mute track 1 & 3. Use the Pand & Crop tool on track 2.
Ensure Lock Aspect ratio is OFF, Size Around Centre is ON and Souce: Stretch to fiull output frame is NO.
Grab one of the grab handles on the top or bottom of the frame and pull in to letterbox the video.
This will be your main (centre) video.
Now mute track 2, unmute track 1 and use P&C on track 1. Do pretty much the same as with track 2, but this time after shrinking the height grab the "F" frame by somewhere in the middle (but NOT the centre dot) to move it up to the top of the output frame.
Now mute track 1 and repeat for track 3, but this time move yje frame to the bottom of the output frame.
Unmute everything and tweak the P&Cs on each track until you've achieved the desired effect.
Now apply a FX to tracks 1 & 3 to create the border look you want.
Hope this helps.
(PS if you leave a gap between the visible bits in each track, you'll get the black line as per the video - or, if you have another track of solid colour on track 4 you could have that colour rather than black)
Hope this helps

__________________
Tim