thebutcher said:
Well, it didn't work: I tried to re-encode the M2V file to an AVI with VirtualDub, but 3 hours and 100 GB later, the picture of the new AVI is all jerky and squished....What is going on?

What happens when you play the AVI by itself? Is it squished in Media Player as well as in Vegas?

Which way is it squished? It could simply be that you made a non-anamorphic video from an anamorphic DVD.

If you can get the AVI into Vegas, you can adjust the height and width until the video has the appropriate ratio.