Anderton
You don't have to buy or use Vegas! I just recommend Vegas because it's such a great video editing program for Windows. You can take "the Logic approach" and do a format conversion. If you search on "free MP4 to AVI converter" you'll get pages of returns.
Craig - no disrespect intended, and my post was not directed at you specifically, but more to Cakewalk. The common (on these forums) "solution" to "Just Use Vegas" has been echoed repeatedly by many users who like you have figured out how best to get around the limits of SONAR. I have always valued your input, and have great admiration for your refusal to "blame the tools" - to post solutions to inherent limitations in the software. Your focus is clearly on finding a way to make it work. Period. And that's as it should be.
All of that helps the user base to get the job done.
That being said, as a user of SONAR, I suggest that SONAR could be better in this respect out of the box. However that's achieved is largely a business decision, and I understand that SONAR was never intended to be a video editor. Even better communication of what works, which Codecs, conversion tools etc would go a long way to making users more aware of what the real capabilities are. Be up front - it does this, doesn't do that...Is unlikely to ever do that.
The exact same thing can be said about Staff View - "use Notion/Finale/Sibelius/Digital Performer/Cubase" just apologizes for the inherent limitations within the program in this respect. (Yes - it helps people who really need to do so to get their work done and that's important too).
To echo what rogeriodec said above, I still think SONAR is the best DAW out there, and there is so much more about it that I love and couldn't work without. Nothing wrong with working on the few wrinkles, grey hairs and love handles though - or pointing them out - (all in the family).