I have worked out a solution for timecode breaks which is easy and relatively uncomplicated.
Background:
I recently borrowed by Father's Canon ZR700 mini-DV video camera. I have an older ZR200. Both are decent cameras, especially for the price. However, when I tried to import video from the ZR700 camera using FCE 3.5.1, I experienced breaks in the time-code which produced an unworkably slow process as FCE looked for timecode breaks.
Solution:
After some thought, I decided to use iMovie 06 to experiment with off-loading the video to DV and then "sharing" it back to "video camera" via mini-DV tape.
By using this transfer technique and employing the ZR200 camera as the "sharing" camera - which takes a little extra time and loses the original time code information - I was able to produce a tape which created a smooth and continuous import into FCE without timecode breaks.
I went on to experiment with this same process using the original ZR700 as the "sharing" camera, that is to say, I shared the DV back to the same tape from which the original video was extracted, and it worked fine.
Although I can't exactly explain why this works, I suspect that the timecode is placed in the video using a different route than the record head and FCE can see it.
Why the Canon ZR700 model exhibits such random and poor quality timecode quality is unclear. It may be this particular unit or for some other reason associated with the design or production quality. However, the older ZR200 camera is great and gives solid timecodes on all my videos.
Last note: I also used a record speed of LP versus SP when I "shared" in iMovie 06, even though the original video came from an SP tape. I can't see any difference except that the tape lasts longer.
WARNING: This technique loses - or appears to lose - the original recording information which is imprinted on the tape, including the date and time when the video was recorded. In order to re-create that information, I place a note into the video in iMovie 06 which states when (date and time) the video was taken. Some people care about this information, others don't.
Well, that's my solution to dropped or irregular timecodes. I would be interested to know if this technique works with other cameras.