What you see is normal. When you add plugins, the playback rate will go to the floor. This is absolutely normal, as these are CPU-intensive actions. Even upgrading to the fastest computer available today might not give you real time performance when using plugins or even transitions. So, relax, and do the color correction at the very end, after you have finished your editing in real time.
Yes, if you render out in an intermediate format (e.g. Cineform) and then you import that back to your project instead of the original clip, it will be smooth again.
However, as I said earlier, the way to work with this is to first edit your film, have your final edit, well, finalized, and then, at the very end color grade. Because at that point, you don't care if the movie is edited ok or not, because you have already done that part. You would only care if the colors look right. And at that point, you don't need real time playback, you just need a few frames here and there to give you an idea if the coloring is correct or not.
I work very non-linear, usually doing color-correction and effects during sequencing. FX bypass comes in very handy when I just want smooth playback without waiting for a pre-render.
Vegas is silly tho. My editing machine is an 8 core workstation but It still slows down editing SD AVI's with some color correction applied, so upgrading to somthing faster wont help as much as you think when it comes to preview.
No, this is not a Vegas problem, this is true for any video editor. In fact, I have seen editors that are even slower than Vegas when using their versions of plugins. Plugins are very CPU-expensive, there's no way around it. I don't get why you don't want to understand that.
Besides, they tax a lot of other parts of the system, so it's not like having enough CPU is enough.
You can compare Vegas to Premiere Pro CS4 if you watch my video. Using a DV converter box PP CS4 looks smooth as glass with DV footage. It will actual look better than Edius with certain image files. I could never get Vegas or even FCP to look as smooth as PP CS4. HD footage will out put to an NTSC monitor but you have to remember that you are only getting one out of evey 3-4 pixels. Even if you render the footage the fast moving PIPs will jitter a bit with any software. The is an advantage to having a Decklink or AJA card. It will still more often than not look smoother than the VGA RT preview.
My system is a cheap $600.00 2.66 GHZ Quad Core. I can get RT effects up the wazoo using native footage HD footage in any project settings. I can edit native AVCHD with out any effects in RT easy.
It depends on what effects you add. Basic color correction, including curves, should give you NO slowdown at all, especially using DV. If you add blurs, diffusion, time remapping, etc., you'll start to see more siphoning of playback speed. It depends on how much number-crunching the CPU has to do in order to achieve the effect. And for the record, I've seen no clear advantage in this regard in CS4, and I've used both extensively. CS4, however, does NOT have a playback framerate monitor, so what may appear to be "real-time" may well be a few frames slow. That said, CS4 does automatically take advantage of the video card for acceleration and Vegas does not, so you'll see a bit more advantage the more you pile on FX.
Yes, the FX Bypass button is a good friend when editing. Just remember, though -- the fewer FX, the better. Learn to achieve what you want in the fewest steps possible, and you'll fly through your editing no matter what you're on. You have many, many choices for achieving particular looks, so a lot of practice and study will be of great aid in figuring out how to do what you want as lightly as possible.
As for Render to a New Track, the whole point of it is that it automatically puts the rendered footage onto a new track so that you don't have to replace the original footage; you can just mute the original or delete it or even just leave it there if the new track is above the original.
Generally, though, if you're going to go that route, I wouldn't necessarily do it to Cineform; I'd do it to a "finishing" codec for the most robust rendering so you can really see what it's going to look like. I'd only do it to an intermediate codec if a finishing codec defeats the purpose -- i.e., you still can't get realtime playback.
But in general, I rarely render to a new track; a combination of FX Bypass and changing the preview quality always gets me exactly where I need to be. When you're judging an editing timing, you don't usually need the FX; when you're doing your FX, you don't usually need real-time playback.
The biggest overall factor is the color space you choose to work in.. I keep forgetting mine is always set to 32bit floating point. That's why even SD footage slows down the preview. If I work in 8bit, vegas preview is super fast.