ADPCM? What the heck?
 

I've been getting a LOT of these lately. Folks are coming in with .AVI files on Sandisks from their cameras and the format is typically M-JPG for video and ADPCM for audio. Vegas 8.0c is reading the video portion just fine but it just does not recognize the audio. I have Quicktime Pro installed and the QT player plays it back fine so I'm assuming I have the codec for this audio installed. To get the audio in Vegas I'm having to export out of QT the audio stream to WAV and then bringing that wav into Vegas. For a couple of files that's ok, but for hundreds? Not so much. Am I missing a step or something as to why Vegas just will not read this audio file?

Media Info is giving me this for the audio info:
Audio
Format : ADPCM
Format profile : U-Law
Codec ID : 7
Codec ID/Hint : CCITT
Duration : 1mn 11s
Bit rate mode : Constant
Bit rate : 128 Kbps
Channel(s) : 1 channel
Sampling rate : 16.0 KHz
Resolution : 8 bits
Stream size : 1.08 MiB (1%)
Interleave, duration : 33 ms (1.00 video frame)

Any insight is greatly appreciated.

Trying to read the newest camera formats in an editor that is several years old is a recipe for trouble. I cannot definitively say your issue will be fixed by moving to a newer NLE, but the longer you stay with the older one, the more converting you're going to have to do to bring new camera formats into it.

And just because Quicktime will play it, doesn't mean Vegas will. Vegas doesn't have a quicktime engine built in.

Too true. ADPCM is a standard Microsoft codec, but some codec free codec packs seem to remove it. If Windows doesn't play it, Vegas won't either, so see if Windows will play it. If not, try reinstalling the ADPCM Codec. Theres some handy instructions here: Where to get adpcm codec?