I made this because i'm bored.
If you have tried to edit a graal video in sony vegas, you has possibly got bad quality and failed. You can really try any recorder on graal and get horriable quality. But if you want good quality like:
http://www.youtube.com/watch?v=qUzuH0iignU
Then this is your guide.
Your settings should look like the attachment at the bottom.
Next if your computer cant open WMV witch is common
Download
Prism Video Converter
And convert the clip into a AVI.
Now you will have a nice size clip with very SMALL space used.
Now when you upload it in Sony Vegas it should be fine !!