Cheers for the reply, was planning on testing different settings myself but thought of posting here first in case any others have already tested settings before
So far I think for a clip captured in 720p (1280x720) with 59 frames/second, AVCHD 1280x720/60p or Same as Original pre-set is the best. With these settings, the video will be rendered out in .MP4 format and is readable by Sony Vegas. When tried the WindowsMediaVideo 9 preset, I felt there was quality loss with the final render. I'm try to test with custom template but the maximum frame rate available is 30 (missing 59frames/second ) and 1280 x 720 frame size is missing
BTW I'm using the videowave version that came with the installation disc, haven't updated it.