The method you use to convert to DVD makes a 'Standard Definition (SD) Video DVD.' Sony Vegas may not be any use until you move to making some HD media.
I know this topic has been discussed by many people before. MT2S files are being converted to WMV and using windows movie maker I am writing it to a DVD.
It is obvious that the quality gets dropped and all I get to watch is Standard definition video as opposed to HD. I realize that sony vegas or some other software can do the job here. However, I am very budget conscious (you might say that then why in the first place I bought HD camcorder) and wonder is there a free or atleast the most cost effecient software that lets me keep the HD quality even after the conversion to a DVD?