Hey Kev. I've been having this problem also. Got totally frustrated, even upgraded to the new Final Cut Express 4. Then I FINALLY figured it out......just "un-check" the "Warn Next Time" box on the bottom left and your worries & frustration with go away!.....Ya, the video will drop some frames here and there, but it will be WAY quicker to edit your video with some missing frames, and then do a full "RENDER ALL" AFTER you have done some cool editing with your footage....
Well, this is the way that I am choosing to fix it. Basically, you are only dropping frames during playback of your footage. Once you render it you will be totally fine. The "Unlimited RT" (with dynamic checked on both) option gives you the opportunity to edit your video at a MUCH lower quality, but MUCH FASTER. Then, once you are happy with a section of your video, or the whole thing, render it. After rendering it, you can view it at full quality.
Cool, hope this helps man. Can't believe it took me so long to re-discover this....I remember that I went through this same scenario about 3 years ago...uuuuggghhhh.....
Blessings,
Rick