Chrispie, NLE stands for non-linear editor. It simply means your video editing program.
HDV is anamorphic. That means that the pixels are rectangular, not square. However the vast majority of video delivered over the net, including Vimeo and YouTube, uses square pixels. My bet is that you have sent Vimeo an amamorphic 16:9 video (1440x 1080) and their decoder has mistakenly read it as a 4:3 video with square pixels. So what you need to do is convert the video to square pixels before you send it to them. i.e. 1920x1080 (or 1280x720).
Avoid QT (Quicktime) for rendering from Vegas for the net. In any case you might need to purchase Quicktime Pro to render to that. Instead, use Sony's own AVC codec. In Vegas Pro, this is what you need to do...
1. File > Project Properties > Match Media Settings (small icon top right of the dialogue box) > Choose one of the typical video files on your timeline.
This sets the project properties to match the resolution, framerate, interlacing etc. of your source video.
2. Project Properties > Field Order > None (progressive scan)
> Full resolution rendering quality > Best
> Deinterlace method > Interpolate fields
3. File > Render As > Save As Type > Sony AVC
> Template > Internet 1920x1080-30p
I think this template only exists in Vegas Pro 10.0. In 9.0 it may have been called "YouTube". In 8.0 it didn't exist at all. So here are the settings so you can recreate it if you're using older versions of Vegas:


Personally I think the video bit rate of 16,000,000 bps is over the top. I think about half that should be enough, or even less, depending on your upload bandwidth and the length of the video. But I think Wagsy's suggestion of 4,000,000 is a little low for that Sony codec at 1080p. It's not the best codec in the world, so you need to use a higher bitrate than most other AVC codecs. By the way, AVC and H.264 are the same thing.
As for your camera, I'm sure a PAL/NTSC switch is actually very cheap. In the past, some Sony cameras could even be hacked using a remote to switch them over. But, at the generation of your camera, it's a feature that Sony saved for more expensive models such as the Z1. In many ways I'd rather have an NTSC camera than a PAL one, even in Europe. An NTSC DVD can be played anywhere, whereas a PAL one can't, and the standard definition NTSC resolution of 480 lines is correct for upload to YouTube etc., whereas PAL has to be downscaled from 576 to 480.