I just got Sony Vegas yesterday. Instead of just diving in to make a big AMV, I wanted to get used to the program (prior, I have really only gotten to work with WMM), so I tried to clip the opening theme from the series "Princess Resurrection." I eventually got the hang of the timeline and splitting, but...
...Even with this little bit of practice, the footage looks oddly pixelated and slows down a bit when playing in the timeline. The rendered project showed similar errors. I tried adjusting to the original media, and that helped a little, but didn't completely solve the problem. Is there something wrong with my codecs? If there's a simple solution to handling animé .AVI files like this in Sony Vegas, please let me know.
This is probably something simple that I've completely overlooked, but I really hope the file isn't totally glitched up or something.

Thanks in advance for any advice you have!