I just upgraded from Pro 8.0c to 10 and all my P2 (raw .mxf) and .avi's (transcoded with Raylight Ultra) instantly shuts down Vegas when dragged to the time line. I'm assuming DVFilm will need to release an update to Raylight for it to work with Vegas Pro 10 and I'm curious if this caused the same issues when people upgraded to 9.0.

Any recommendations for an alternative P2 workflow would be much appreciated.

I'm not a P2/Raylight user but are you using the latest version?

Their support blog says:

Thursday, September 23, 2010

Raylight Ultra 1.2.3 has been released.
Get it at dvfilm.com/update.

This version fixes some permissions issues when not running as administrator.
It includes an update to the installer for integration with Vegas 10.0

Raylight Ultra 1.2.3 Build D is the version you need for Vegas 10. It's a free
update to Ultra users, at dvfilm.com/update

Keep in mind Raylight AVI's wil not work in the 64-bit versions of Vegas, but
will work in the 32-bit versions.Also AVI's made with the old Raylight (3.0)
may not work with Ultra. If you need more info contact DVFilm Support.

As an update, P2 .MFX files directly imported into Vegas Pro 10 work just fine. I do have Raylight Ultra 1.2.3d and the problem is with .AVI files that are transcoded through Raylight. Files will import into media bin's but once they are dragged to the timeline, Vegas instantly crashes.

I talked to DVFilm and they really don't have an answer at this time. Not an issue other than dealing with older projects (at least versions I had cut in 8.0c) not being able to open in VP10.