The 33-year-old Sugiyama dropped the first three games of the first set, then won eight straight against the 19-year-old Vaidisova.
It was a tough day for Americans, with only Jill Craybas remaining in the $1.34 million hardcourt tournament after her 6-4, 6-3 victory over Sharon Fichman of Canada at Uniprix Stadium.
Bethanie Mattek, who cracked the top 50 in world rankings by reaching the semifinals last week in Los Angeles, fell 7-5, 6-2 to 56th-ranked Marta Domachowska of Poland. Jamea Jackson lost to 11th-seeded Victoria Azarenka of Belarus 6-1, 6-1, Ahsha Rolle was beaten by Alisa Kleybanova of Russia 6-4, 6-2 and Julie Ditty fell 7-6 (4), 6-0 to Melina Czink of Hungary in a battle of qualifiers.
In the late match, Dominika Cibulkova upset fifth-seeded Elena Dementieva 6-4, 6-2.
Fourth-seeded Svetlana Kuznetsova advanced when fellow Russian Alla Kudryavtseva retired in the second set with a right shoulder injury. Kuznetsova led 6-1, 1-0 at the time.
Aleksandra Wozniak beat Chan Yung-Jan of Taiwan 6-2, 1-6, 7-5 and the Canadian will play Jelena Jankovic of Serbia on Wednesday.
In other matches, 12th-seeded Nadia Petrova of Russia beat Marie-Eve Pelletier of Canada 6-0, 6-1, 13th-seeded Maria Kirilenko of Russia topped Anne Keothavong of Britain 6-1, 7-5, and 15th-seeded Flavia Pannetta of Italy rallied past Olga Savchuk of Ukraine 1-6, 7-5, 6-3.
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