Open a new project in Vegas (CTRL+N)

Create a new video track (CTRL+SHIFT+Q), create a selection, and right click within the selection.

Choose "Insert Generated Media" from the submenu, and open the Protype Titler tool (PTT) from the new menu selection.

In the PTT, create a new text block by either double clicking the words "Sample Text" and deleting the characters, or by double clicking in an area away from the Sample Text characters. In this new text block, create spaces with the SPACE bar.Nothing will appear on the screen, and this is how it should be. Not many spaces are needed, perhaps 4-8 will generally suffice.

In the Style Tab, tick the Background box. This will allow color selection, along with transparency. If the Background tab isn't appearing, this means that the PTT tool is in text object edit mode, not Text edit mode.

Set the color you'd prefer to use for the lower third.

Now either press the ESC key or click the maroon bar at the top of the title preview screen. Notice that a new text block/object appears, but nothing is in the block. This block may be resized to suit your taste. Holding the SHIFT key will maintain aspect ratio of the current size of the text block; using the center anchor points on the text block allows the block to be lengthened or heightened. Now place the block where it should appear in the frame.

That's all there is to it!

This lower third may be animated in the PTT tool just as text may be animated. A motion path may be assigned to the block as well. Keep in mind that once created, the text object/lower third may be added to the PTT library to be recalled at any point in time.

Find tips like this and more in the Vegas Advanced Protype Titler tool training DVD from VASST.