Apparently DVCPRO HD footage on a DVCPRO HD timeline can ONLY be edited using non-drop frame timecode. I found out about that on the Creative Cow forums.

http://forums.creativecow.net/cgi-bin/new_read_post.cgi?forumid=8&postid=868378&pview=t#head

Well, that will make it rather difficult to achieve frame accurate show timings that broadcast TV requires.

I will have to investigate this further.