Hi everybody,
encountering a major ball ache whilst trying to add to my timeline.

Basically, I have chopped up an .avi file and using the clips to add to my timeline.
The problem is, Vegas seems to distort the picture into black and white and slanted.

When I play the clip in other media players it works fine. It worked fine under Cyberlink video editor as well.

I uploaded my problem onto Youtube so you can see what I am talking about:

[ame=http://uk.youtube.com/watch?v=Or1HOSnObps]YouTube - Sony Vegas 8 problems[/ame]

I first thought it may be an aspect ratio problem, since my project is 320x240 yet the clip sizes are 718x538, could there be any logic in this?

The puzzle is, I tried it through virtualdub and the video BEGINS to play in the same way as Vegas plays (distorted) but it gets it's act together after the 1st second and plays it the way it should look, so I know it's not the file itself.

Also, I have tried adding other videos to the timeline, with sizes of 624x352, and they show up fine.

Could anybody help me with this issue, if so it's really appreciated.