Please tell me you are not using XVID/ DIVX as your source file to edit with. Vegas has many problems with using these codecs and screws the field orders up causing blended fields and other video anomalies, plus the compression problems with video noise etc would really put a dampener on all your hard work. I noticed in your trailer there were some really bad blended field problems which were very noticeable during the saber fights. I thought it was just down to youtube or something but now you have said what codec you are using is all became clear. Did you remove the 2:3 pulldown when ripping with DVD Fab?. You really need to do this first because Vegas can be very picky with removing the pulldown. And is your project set to 23.976fps or 29 fps?

You would have been better ripping the DVDs to a m2v file with DVDDecrypter in stream mode and this way you are using the original files for your edit with no further compression. If vegas plays up with importing the m2v file just remux it to a mpeg2 container minus the audio first. If the files you imported into your vegas project were the direct rips from the dvds in xvid format then just re-rip them as mpegs and replace each movie file in your project with the mepg versions.

Vegas is pretty hit and miss when it comes to importing XVIDS. this thread may be of some help to you

http://forum.videohelp.com/threads/194219-Importing-xvid-and-divx-into-vegas-a-solution