I still use Any Video Converter (Free program) for simple and quick conversions. I always use WMV, because that's the only format that seems to work consistently in Sonar 64.
When I'm done I line up the audio in the original film, in Vegas, or Quicktime Pro.
As far as the actually handling of video, X2 seems to work the same as 8.5 and X1. So not sure what's going on in your case Randy.