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I would not use Premiere Elements on a 64-bit operating system, Brian. Although many people have been able to use it in 32-bit compatibility mode, it's still a rather iffy proposition.
As for the advantages of Vegas over Premiere Elements -- that's a tough call. It's like comparing a Chevy to a Ford. They're both nice cars, but each has features that it does slightly better than the other.
Vegas is one of the most stable programs on the market -- although it's not bug free.
Premiere Elements offers a much greater number of video and audio tracks and many deeper controls and features.
But I don't know if one is a clear winner over the other.
Can't ask for a more honest answer than that!
As much as I would like to get the eventual Premier Pro CS4, I can buy a full copy of Vegas 8 Pro for $130 on B&H. The price difference alone might just sway me. While I may not be creating any professional documentaries, I take my hobbies seriously enough to utilize most "pro" features.
Apparently Vegas Pro 8 is going to have a 64-bit update coming out soon for existing users. This is another big plus for it. Still, I wish a Premiere Elements 7 trial was out right now. I'd like to see how it runs on my system before making any final decisions.
It's Vegas Pro 8 only, no DVD architect, so you will not be able to burn to dvd.
I've been using Premiere Elements 4 on 64 bit Vista without any problem. Because of having lots of memory it runs and renders much faster then on 32 bit.