I own both the POV.1 Helmet Camera and Sony Vegas 8 (Movie Studio). Now, one would think editing videos made by the helmet cam would be no problem with Vegas … For some stupid reason, Vegas won’t read the video part of Xvid encoded files.  It obviously isn’t because of missing codecs, since vlc has no problems playing the files. After a bit of digging in the internet I found 2 tools to help fix the problem. The first shows which codec is used in the .avi (and can help if your problem is “only” a missing codec). It is called gspot. The second tool is called AVI FourCC Code Changer.

The solution to the problem is to start up the FourCC changer, open the POV.1 video (or any other Xvid video), and change booth fields to DIVX, press “apply” and that was it. Now Vegas stops behaving like a dork and reads the files.