I encoded an hour and a half movie in Vegas and the result is fine. The only thing is that when you skip through parts of the movie, that audio and video gets out of sync. (Skipping to 40 minutes into the video, the audio is about 3 seconds ahead.) I'm not sure if this has anything to do with it, but I interleave every 0.250 seconds (default), DivX 5.2.1 video codec, and Fraunhofer IIS MP3 codec (don't know how to get the LAME codec to work.)