Question : Problem: What Vegas video encoding format / settings to use for ps3, psp, youtube, and ipod

I have a sony hdr-cx7 video camera that I use to record video using the highest HD settings.  I would like to edit the video and encode it once and for all in a single highest quality format that is compatible with the PS3, PSP, youtube, and IPod.  I would rather not have to encode in separate formats for playback on all of my devices.  Is this possible and if so, what settings should I use in Vegas Pro?

Answer : Problem: What Vegas video encoding format / settings to use for ps3, psp, youtube, and ipod

The problem that you are going to have is the size. YouTube has a 100Mb limit so you're not going to get much HD footage on a 100Mb file. Your camera records in H.264 (AVC) format, so it's best to stick with that as both playstation and iPod support H.264.
Playstation will play HD but It really won't work keeping one whoping big HD file and trying to upload it to Youtube and then trying to download it to an iPod. iPod is looking for its own resolution and their should be a setting in Vegas for iPod.
My advice is to make an extra file from the master for iPod, which you can upload to Youtube also -- and then see what the PS3 is looking for in its HD format.