Enabling Smart Proxy
Proxy files are lower resolution working copies of video files. They are reduced in resolution or compression bit rate for only one reason — to speed up editing of high definition files such as HDV, AVCHD, etc. Proxy files are source-dependent rather than project-dependent. In other words, proxy files can be shared among different projects. Smart Proxy can also be used in other video file formats and is not limited to HDV files only. The main purpose of this feature is to have a more efficient editing experience by making smaller proxy files out of large videos.
When you edit and preview your project in Instant Play mode, proxy files will be used as substitutes for their large video source counterparts. Whereas when you preview your project in high-quality playback mode or when you render a video file, the original video source files will be used.
To enable the creation of proxy files, go to File: Preferences – Smart Proxy, then select the Enable Smart Proxy option. In the Smart Proxy tab of the Preferences dialog box, you can set the condition when proxy files need to be generated and choose a proxy file format. Or you can also click 
in the Toolbar and select Enable Smart Proxy. Select Settings to customize Smart Proxy settings.
Notes:
· The Smart Proxy feature is enabled in VideoStudio program startup.
· The Smart Proxy File Manager contains files that have been applied with Smart Proxy.
· The Smart Proxy Queue Manager contains files waiting in queue to be applied with the Smart Proxy feature.
In the case of HDV files, Smart Proxy is automatically activated during capture and use of HDV files in your project.
Once Smart Proxy is enabled, proxy files will automatically be created and used in your project whenever you insert video files into the Timeline.
In the Toolbar, click and select Smart Proxy Queue Manager to see the list of video files to be generated as proxy files. Select the files you want to include in your queue and then click OK.