In another thread I said that I couldn't get Avid Studio to smart render DV-AVI or MPEG-2. Well, I uninstalled and reinstalled Avid Studio. Now it's smart rendering. With all the experimenting going on, I could have broke something.
I should also state that I cleaned up a lot of codecs that were on my machine and ran a registry cleaner. Don't know if that helped the smart rendering cause.