Ok, here's the situation. I have several already authored DVDs of which I need to make a demo DVD showcasing stuff from each of them. I found I can use DVD Decrypter to demux the VOB streams to separate .m2v and .ac3 files. However, Vegas won't let you drop neither an ac3 or m2v file on the timeline in order to edit. I also tried direct stream copy to get the VOB file itself and you can't drop that into Vegas either..

What can I do to be able to edit this stuff so I can make the demo DVD? Also, since this video is already compressed to mpeg2, I'm guessing I will be losing quality for that Demo DVD when it's finished, correct?

Oh wow, I just did a bit more research in the forum and discovered that VOB won't show up in the explorer window as a supported media type, but if you change the view to "all files" and click on the VOB, you can drag it right to the timeline without any problem.