XviD is a heavily-compressed,

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XviD is a heavily-compressed, delivery-only format, designed for decent quality, small file size, streaming media. For that sole purpose, they do a good job, but they are NOT designed for editing in NLEs including Sony Vegas Pro. The best way to let Sony Vegas Pro work with XviD files is to convert these files to Sony Vegas compatible formats like MPEG-2 previously.

Source: http://video-editors-studio.over-blog.com/2016/09/import-xvid-to-sony-vegas-pro.html

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