Q: When I import Video into Sony Vegas, the quality looks worse than the original video ?
Answer: There are two things that can cause this and they are easily fixed by adjusting your settings.
Preview Window Settings
The Preview Window will often deliberately lower the quality settings, so that the video can play back more smoothly and without lag, while you edit your project. This is perfectly normal behaviour and all video editing programs do a similar thing. These settings can easily be changed, if you want to view the original video without seeing any quality loss. Simply set the Preview Window back to Best/Full. When you do this however, you may notice that the video starts to lag when you play it back. Lowering the quality to Good or Preview, will help play back.
Please also note that the Preview Window quality settings have absolutely no effect on your final rendered videos. When it is time to render/export your project into a new video, the program will use the original full HD settings.
Disable Re-Sampling to Reduce Motion Blur
Re-sampling can also effect the quality of a video in the Preview Window. By default, Sony Vegas Pro and Movie Studio Platinum apply a setting called Smart Re-Sampling to all videos imported into the timeline. When this setting is turned on, it can make some types of video look like they have a lot of Motion Blur. This happens even more if the video contains lots of fast moving action scenes.
You can turn this setting off by right-clicking all your videos on the timeline and going to Switches/Disable Re-sample. This can also be done just once, if you first highlight all your videos as a giant group and then right-click to change settings. It is also a good idea to change this setting before you begin chopping up your videos into smaller segments.