A sample of the flickering problem:
My humble system:
Win XP w. Service Pack3
Athlon Dual Core 2.1GHz
Vegas Movie Studio 9 Platinum
Me: New to video editing
So this flickering seems to occur only when clips "overlap" each other from fade in and fade outs. If I render a long stretch of footage w/o the fades the flickers stop occuring.
Flickers still occur even when I render to standard definition so I don't think that its just my computer not being able to cope w. HD.
The original video was shot on a GoPro HD Hero camera which uses MPEG-4 H.264. I then converted it to AVI using MP4Cam2AVI as recommended in a GoPro forum- apparently because AVI is easier to work w. in Vegas than MP4. This software "swaps" MPEG4 and AVI containers and doesn't transcode the actual video.
The flickering does not occur on the original MPEG-4 footage or the converted AVI footage that I used as a source file.
Edit: I am rendering to WMV