"I've actually taken the vob files (not demuxed or if I got the term wrong, where the audio and video is in a single file and not seperate streams)"
You got it correct.
"and converted them to divx format. It works well in ulead's media studio pro."
Interesting. Vegas doesn't like DivX files. They'll load, but they're clunky as hell.
"When I renamed the vob files and loaded them up into MSP, there would be sync issues, and it would be tougher on the program because the files were bigger. I'm just thinking if I re-rip, demux, then split up the channels and then do my business with them, and then have to re-sync them, i'd get some problems."
First of all, I hope you are splitting the audio before converting to DivX. Secondly, splitting the audio and keeping them in sync is easy in Vegas. You load each track into its own.....uh, track, and then link the files. Whatever cut you make to one is made to all. I ran the SW THX soundtrack through a program that emulated a Pro-Logic II decoder, and created 5 audio streams. These were fed into Vegas, synced with the video, and then I created an AC3 soundtrack.