Pagz said: I'm also curious what the point of AVIsynth is if it's better to just write the script yourself.
You misunderstand what Avisynth is. Avisynth is a frameserver program. You write the script for Avisynth.
Once you have loaded your m2v into DGIndex, you save as a d2v. Then write a script pointing to the location of the d2v on your hard drive.
Mpeg2Source("Your_Directory_Structure\Your_Filename.d2v")
Open that script in Virtualdub. Then:
Video-->Compression-->Lagarith lossless codec
(Install lagarith if you haven't already)
File-->Save As-->AVI
Rendering might take a while.
EDIT: Vegas requires RGB. If you use Full Processing Mode (under the video tab), your AVI will be converted to RGB. I don't use Vegas, so I don't know what kind of RGB it is best to work with in Vegas. If I were you, I would find this out, add a line to the script to make Avisynth convert to that from of RGB and use Fast Recompress (under the video tab).