Vegas has had issues for years with working internally in RGB color space. I don't believe this has changed in version 9 and leads to image degradation. I believe you are essentially handicapped from the beginning by working in Vegas. The 32-bit floating engine in Vegas does not equal Premiere.
Now before anyone accuses me, I am no particular fan of Adobe or Adobe products, I have gripes with Adobe and they have shortcomings just like everyone else.
YES...I am suggesting that the OP at least try using Premiere on native video without any transcoding since he already has CS5. I don't understand why that wouldn't be the first path taken.
BTW, I just discovered that the Premiere CS5 trial does not have the h.264 codec or the DSLR editing presets, so there is no way to try before you buy. That is unfortunate because no one seems to believe the performance is better than expected.
Now before anyone accuses me, I am no particular fan of Adobe or Adobe products, I have gripes with Adobe and they have shortcomings just like everyone else.
YES...I am suggesting that the OP at least try using Premiere on native video without any transcoding since he already has CS5. I don't understand why that wouldn't be the first path taken.
BTW, I just discovered that the Premiere CS5 trial does not have the h.264 codec or the DSLR editing presets, so there is no way to try before you buy. That is unfortunate because no one seems to believe the performance is better than expected.
Vegas has had a 32bit float engine for several years, and I've colored at least 4 films using it over that period of time. Vegas 9, released last summer has handled native 5D/7D footage since it's release and I have colored one film shot on a 5D in that time.
Perhaps CS5's 32bit float engine is magically better than Sony's. And perhaps you guys are right.. there is no need to transcode. The original poster asked about CS5 *AND* Vegas. So I will defer to you guys on the CS5 side.. but I absolutely stand by what I've said if he is planning to take his work through Vegas.
Further, if the OP said he is having struggles with this HD footage in it's current DCT based i-frame codec, are you thinking he'll get BETTER performance using highly compressed H.264 on the timeline? Especially since it seems he doesn't have the hardware spec to meet the Mercury Playback engine needs?