What filing system does the 128GB unit use? (Does it break clips up?)

Yes it does. I can see this folder called "streams" with all the xxx.mt2s in there. However I did not remove it the right way. I still see the thumbnails when I had them offloaded.

I have no idea why Vegas8 wouldnt load them.

And yes, the iris change is stepless like the EX1. Very nice!

In reading the NX5U manual it doesn't look like it does crank forward/back like the ex1. The slow motion has a 12 second maximum so it looks similar to the cx camcorders. Wondering if it also reduces quality like the cx models, if so the slow motion won't be usable for anything professional.

I think the newer Sonys retain higher resolution in the slo-mo mode... the image appears to retain pretty good quality.

In reading the NX5U manual it doesn't look like it does crank forward/back like the ex1. The slow motion has a 12 second maximum so it looks similar to the cx camcorders. Wondering if it also reduces quality like the cx models, if so the slow motion won't be usable for anything professional.

It does however do 720/60P so just drop that on a 24p timeline for really nice slowmo.