If you go to the Sony Creative Software website, they have an article explaining which GPU's and Drivers are compatible with GPU Acceleration. In order to utilize the new GPU Acceleration features you will need to have a compatible Graphics Card installed and make sure you are running the latest drivers.
Compatible Graphics Card and Latest Drivers However this feature is only available for the Sony AVC/MVC (.mp4) and Mainconcept AVC/AAC (.mp4) templates at this stage. When you go to render your project now, you can also access the processing power of your GPU to speed up your rendering times quite significantly. So the Sony Creative Software engineers have finally linked your Graphics Processing Unit 'GPU' to the Preview Window to create a much more usable experience. Not being able to see your project playback smoothly while editing can be very annoying indeed. One of the biggest problems that all video editors have had to live with since the dawn of time, is lag in the preview window.
The biggest change to Sony Vegas Pro 11 is the addition of GPU Acceleration to the Rendering Engine and also the Preview Display Window. *Video tutorial at bottom of article GPU Acceleration In this video tutorial I introduce the new features and tools that are now in Sony Vegas Pro 11, including the new GPU (Graphics Card) Acceleration integration.