I own vegas 7. Will vegas 7 fully support the EX1 or will I need to upgrade to Vegas 8? Thanks.

I'm about to move to version 8.
I can tell you that version 7 for sure works with the EX1 1280x720 mxf files.
I was working with only the video, I'll have to confirm audio.
I imagine it will also work with 1440x1080 mxf files. I'm not sure about 1920x1080.
I think it might.

V8 works with HQ mode files.

You have to use the transfer software first though to convert the EX MP4 files to MXF.

Is converting neccesary for vegas 7 and vegas pro 8 ?

Yes. But the conversion literally takes a second. It's no big deal as there is no actual transcoding going on.

Ok,i haven't actually got my EX1 yet ( hopefully after christmas),but i've downloaded the clip browsing software and been to an EX1 demo,although i haven't actually seen the workflow process using vegas pro 8 with my own eyes,although i have had a trial of vegas pro 8,which is what i'll be using,so could you explain the procedure using the EX1,from capture through to getting footage to the timeline ready for render.
I just want to get my head round it but it's hard to without the gear in my hand.
Thanks.