I still do not get vegas video
What don't you get about it?
ok to be honest i haven't spent more than like 3 minutes trying to figure it out, but i'll tell you in those 3 minutes i wasn't able to figure out anything. like anything that i want to do. which right now is to get to making a highlight reel out of that roddick gasquet match. but yeah i am going to try to figure it out and spend some time and then complain for serious.
Believe me, once you get it, you won't want to go back.....

I'll attempt to describe it to you, but I may not be able to do very well.
You can see the way it's layed out in that screenshot? The video is place in the timeline along with the audio. To create a highlight, after you've dragged the video you want to break down, and allowed Vegas to render the audio (this can take a few minutes if it's a long video), all you need to do is hold the control key down and drag the video down to the next video line down. Typically it's one video, one audio, one video, one audio, line ut that can be adjusted as needed. When you drag the video down (with the control key pressed) a copy of the video is made on the new timeline. You can make as many copies the same way as you need. I don't know if there is a limit to the timelines.
Now to actually edit the video you grab one edge of the video and drag it in. Watch the video display (in the screenshot it's upper right, the default location is lower right). The display will show what is being cropped as you drag. You drag to crop, or drag back to re add what you wanted to crop. Then you do the same thing to the right side. Drag that back until it's just after the shot you want to highlight.
Those are all the tools you need really. Just frame each shot you want to add to the hightlights by dragging each end, then place the shots, one after the other and save. I would recommend saving the video arrangment once in awhile. It's just a pointer file to tell the program how things are arranged, so it's a small file. Once you have it where you want it, save it as whatever format you want it in.
I probably wouldn't go about it in exctly the way I've described. I wouldn't make numerous copies and then crop them. I'd probably make one copy crop it, then another and crop it. I'd probably only use two timelines, but you can use as many as you need.
Like I said once you get the idea, it's very easy and intuative. You can preview what you are doing as you are doing it. No marking files for some action and hoping it looks OK. You set the action and preview right there. You can overlap the videos on the timeline and set transitions the same way.