Im making a video that syncs to music, and I am unable to fine tune the clip lengths to land directly on a beat. It seems to snap to all the smallest marks at the top of the timeline. Im not sure if these are frame marks or what. Is there some way to make really small adjustments ON the timeline. Hope that makes sense...

Tap out the beat with markers.

Enable quantize to frames.

Your clips should snap to the markers. It's a little easier in Vegas 7.

I believe it's possible to disable snapping to the grid thing.

2- The numpad keys allow you to edit in increments of 1 frame. In case your markers are slightly off.

...Is there some way to make really small adjustments ON the timeline...
As Glenn mentioned, keep "Quantize to Frames" *on*. This keeps you cutting between frames. At about 1/30th of a second per frame for video in the US, this is as good as you can do for sync. But it is good enough.

Zoom in to the timeline to assure that you are cutting as finely as you can, by using the up-arrow key or the mouse wheel. Then drag event edges for fine editing.

Glenn's suggestion of dropping markers on the beat is a very quick and handy way to cut picture to music. Just play the timeline and hit the m key in time to the music.

I cant seem to figure out where to turn on the quantize to frames feature. Can someone point me in the right direction? Also, when you say tap markers on the beat, do you mean markers on the timeline, or on the actual music track. Sorry for the newb confusion:)

I cant seem to figure out where to turn on the quantize to frames feature. Can someone point me in the right direction?...Quantize to Frames is the first entry on the Options menu.

...Just play the timeline and hit the m key in time to the music.

...when you say tap markers on the beat, do you mean markers on the timeline, or on the actual music track. Sorry for the newb confusion:)
No worries.
a) put the music track up in the timeline
b) play the timeline
c) hit the m key in time to the music

Use ctrl-left arrow and ctrl-right arrow to navigate between markers. Use shift-ctrl-left (or right) to select the area between markers.