Conversion of veg files to avi file format

You cannot exactly convert .veg files (Sony Vegas) to AVI, or any other video format for that matter. You need to render the video in Vegas and not save it as project. Which means your only option to get your .avi video, is to use the original Sony Vegas, open the .veg file and render the video. This may also require the original video source however, without it a .veg file is just a bunch of instructions that is useless for you.

Open VEG file    Open AVI file