Is there an easy method for digitizing from a layer added from the OpenLayers pluggin. As i cannot snap to it or use it as raster so the entire map does not load?
two separate issues there.
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It is possible to capture Bing imagery, in small lots. If you zoom to your area of interest in the OpenLayers plug-in than go File -> Save as Image... this will save the current view as an image georeferenced to EPSG:3857. This can be loaded back into QGIS, set its CRS to EPSG:3857, set the project CRS to what ever you are using and enable on-the-fly CRS transformation.
I'm far from sure if this will be of any use to you.
Since OpenLayers plugin adds only and image layer, there is no way to snap. Please elaborate on the second part of your question. I don't understand what you mean.