capture the images in monkeyjam, once your done go to file-->Export as AVI. Then find your file in Sony Vegas and edit it!

Hope this helps!

Ok thanks for clearing that up, but can it do special effects and hd videos like what I was talking about?

You won't get the high resolution you want with Monkeyjam.

Helium Frog is the only free animation program I know of that can do high-res.
If you're okay with paying, there's Stop Motion Pro (Action! HD version).  I use it, and I think it's definetly worth the money.

I use MonkeyJam, and I love it.
As for video editing, don't get Vegas.
Drop the extra cash on Premiere Pro, and save yourself a giant heap of trouble.

Well, I've never used SONY Vegas, but there seem to be two types of people who use it: Those who hate it with a passion, and those who like it for its simplicity, and because they're upgrading to it from Windows Movie Maker.

My thoughts are, if you are going to invest in a non-linear editor, get Premiere, as most schools will use that in their filmmaking courses, and because is more effecient in its methods of doing things.

I undrstand that Vegas can do visual effects as well, but like Premiere, it is an editor, not a compositor.
For this, you may want to get Adobe After Effects, which works beautifully with Premiere through DynamicLink, can create Visual effects the likes of witch Vegas can't even come close to.