Can you export from Vegas timeline or from individual clip as native DV file?

Yes. "Render As> DV AVI"

I'll need to write out files more than 2gb (the limit for avi).

2 gigs isn't an AVI limit it's an OS file size limit. You have to change your drives to NTFS...your probably running FAT32. With NTFS I believe the file size limit will be 15gigs.

I've been doing some reading....it looks like 2gig is the limit for AVI but AVI2 (which Vegas can handle) doesn't have the 2gig limit. Does that sound right?

Yes. The first version of AVI had a 2Gig filesize limit. (Of course the OS had a 2Gig filesize limit as well at the time - FAT). Then came along FAT32 which upped the file size limit to 4 Gig and NTFS which upped the limit to a few terrabytes (or something like that). AVI Type 2 no longer has that file size limit which is what Vegas uses by default. I routinely have 13+ Gig files.

Hey thanks Glen and Ed. I'm trying to find a tapeless way to share video with my partner who will be editing in Avid. Looks like this will work. - Jeff

The EASIEST solution would be to convert this "Avid" guy to Vegas. Then you could share your .VEG files. *hint hint*

Sounds like a plan!

Ed, under General Preferences, do I need to check "Strictly conform to AVI2 specifications"? Thanks.

No.

Strictly confirm to AVI2 - unchecked
Use Microsoft DV - unchecked
Ignore 3rd party codecs - CHECKED

These are the default settings.