Avermedia C281. How to edit videos?

[Ollie999]

Just bought an new Avermedia C281 capture card. It's easy to set up and capture video from the XBOX360 and the video quality is just about ok. The problem is how to edit the files produced by this. The original files won't load into Sony Vegas or Windows live moviemaker. You have to convert them from .AVI to either WMV or MP4 first which causes a significant loss of quality which somewhat defeats the object of having a HD capture card. So far the only editing software I can find that will support this format is Microsoft Expression Encoder 4 Pro which costs £160. Anyone got any ideas on a cheaper alternative?

 

[senu]

Which version of Vegas do you speak of?
AVI is really just a container so it is the format one needs to know

 

[Ollie999]

Sony Vegas Movie Studio HD 11.0