Copy/Paste of my thread from GENOSCOMMAND
THINGS TO ACQUIRE BEFORE COMMENCING EDITING BATTLE:
Sony Vegas Pro
The easiest editing suite you can get that doesn't sacrifice quality. It's got a really simple interface and its quite powerful. Just make sure you get a PRO version and NOT the shitty family pack platinum thing.
StaxMedia - link
This is the program you're going to be using to convert your video to it's final stage, the mkv container.
This awesome thing is straightforward and will automatically download all the necessary codecs needed to make things pr0.
HandBrake is good as well, but I find StaxMedia to be far more user friendly.
Lagarith Lossless Codec - link
This is the lossless codec you will be using to export your final avi before you put in the Stax to get mkv'd.
WHAT TO DO:
** THIS WILL TAKE LOTS OF SPACE, HAVE SOME **
1. Maek video in Vegas, then proceed to step two.
2. Once you're happy with how the video is looking export the audio. Select the entire timeframe, even if there isn't any audio. This is to make the audio file the same length as the video file (you do this for video too).
3. Render out the selected region of audio as a WAV file.
4. Render out the selected region of video as an AVI, but make sure you don't include audio AND switch the video codec to Lagarith.
5. Wait a decade to render tbh.
6. Open up StaxMedia/Rip, and plug in the video and audio in the appropriate boxes.
7. Pick yo settings then start the job and VOILA
Thats it, if you have questions about the actual Vegas/Stax settings to use feel free to ask me, but overall its pretty straight forward.
With that said, I don't recommend making a 1920x1080 mkv. Many people will have playback issues with their puny underpowered excuses for computers.
If you ARE going to do a 1080p video, make sure the profile you pick in Stax is a two-pass process.