A VEG file functions as a non-destructive project state file in VEGAS Pro, saving references to external media instead of storing content internally, while preserving all edits such as clip placement, effects, transitions, and audio processing, which keeps the file minimal in size and tied to the original footage; upon opening, VEGAS Pro rebuilds the project from these instructions but flags missing media if files were moved, and no final video exists until rendering is performed.
Rendering is the point where real video is made, as VEGAS Pro processes the original footage, follows the edit instructions, and writes a new file like MP4 or MOV, and removing the VEG file leaves the media untouched but destroys the option to modify or re-render the project, showing that the VEG file is essentially an editable plan rather than a finished product, with rendering being a separate purpose since the VEG file cannot function as video and only guides the software during temporary previews.
Rendering is the moment when edits stop being temporary and become permanent output, with VEGAS Pro processing each frame in sequence, applying every edit, effect, transition, color correction, and audio adjustment before encoding into MP4, MOV, or AVI, producing a standalone file that works without the project structure, leaving the VEG file editable but not suitable as a deliverable, and if removed, taking all edit decisions with it, while a lost render can be recreated anytime as long as the VEG and source media exist, making the VEG file the master document and rendering the irreversible creation of the finished video.
When VEGAS Pro opens a VEG file, it interprets the stored timeline structure instead of pulling in real media, using that information to understand track counts, clip order, timing, effects, transitions, and keyframes, and then scanning the system for each referenced source file so it can reassemble the timeline exactly, prompting you to locate anything that has been moved because the VEG file holds only directions to the media.
Once VEGAS Pro finds the media, it shows the project by applying all instructions on demand, merging effects, corrections, transitions, and audio work with the source clips as you navigate the timeline, making performance dependent on CPU, GPU, RAM, and disk speed, with no final video created, keeping everything editable, and simply restoring the workspace for future adjustments or rendering.