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Can i just render a mkv file in Vegas?
I don't see an option for MKV in Vegas...well, the version I use. o_o;; I don't think Vegas is all that good.
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And i can always reduce the file seize somehow if thats necessary?
But the file will be somewhat small though. If you need, I say go ahead, as long as the quality is decent. If you are using MeGUI, you can change the quality for the x264 scratchpad thing. I set the quality to 30, since 30 and the default 23 setting don't look any different. Higher number = better quality.
Tip: When you are ready to upload to the FTP (assuming you are using Filezilla), change the file...setting...thing to resume upload. (Transfer -> Default file exists action) Change the upload setting to "Resume". It will save a lot of headaches and continuous trying to upload the same file over and over (happened to me with Circle of the Moon).