Youtube High Quality
Little did I know that Windows Movie Maker seems to work well with Youtube. By dragging an AVI into WMM and rendering it as 'Best Quality for Playback on PC', Youtube later adds the option to watch it in High Quality.
I found this out when I noticed my older videos had that option and my newer ones which were made with Vegas did not.
So there you have it! Sure make your videos in Vegas but render as a High Quality AVI, import into WMM and render as a WMV. Technically it'll render the video in 760x something else...I think Youtube recognises that as a High Quality size. After a few hours the video will get the 'Watch in High Quality' button under views so be patient!
Hope this helps others because I can now upload better quality Portal and EP2 vids! People have already noticed and commented!