It has to do with pointing the shuttle to the Vegas 5 .exe file. I know it works because I have it working. How I did it, I don't remember since it's different then with 4 until they add 5 to their software.
Maybe someone that remembers the process can chime in.
I didn't have to do anything special. I simply used Options->Import Settings in the Shuttle control panel and it worked. This applies to both my old ShuttlePro and my new V2.
Stupid question, but have you installed the latest Shuttle drivers? They get updated pretty frequently...
I've treid everything I can think of with no success, always the same error message, it'll load all and any of the old Sonic Foundry .pref files BUT none of the Sony files. I've got it to go by fooling it into using the Vegas 4.0 pref file for Vegas 5.0. Hardly an inspiring workaround. One thing I didn't try was the old RTFM, doubt that'll shed much light on it.
You can just load your V4 pref file and save it as V5 and it works fine. You actually will port over all your previous settings from V4 and won't have to change a thing.
Seems the company has changed hands!
There's ContourAVS.com and Contour.com. I'd loaded the latest drivers from the old ContourAVS.com site!!!!!!!!
Someone had mentioned drivers at a much later rev than the ones I'd just downloaded and the Vegas 5 links to Contour.com so I downloaded the latest Version 2 drivers and ALL is sweet.
Man was that confounding. I wish there was somewhere I could post this so everyone would see because by some of the responses above I'm not the only one to get trapped by this.
After going through the same problem, I found that I need to load the latest Contour drivers---that did the job and now it works. Just check to see what version you have.