Synchronizing Video Camera to Cubase 6 - Need Help!

I wish to simultaneously and synchronously record audio and video. I hope to record audio using Cubase 6 on a Mac computer, synchronized via Fireface 800 (Timecode option installed) to the video sample rate and timecode (TC) of my Panasonic HPX300 video camera (setup as master).

With the equipment and setup described below, Cubase will not properly lock and sync with the video camera and go into a record ready state. I am looking for help!

Panasonic HPX-300 video camera
Drop frame
TC Out: TCG/TCR (outputs TC during video recording and playback)
TC Video Synchro: Video Out
GL Phase: Composite

BNC cable from HPX300 Video Out to Video In on TCO of Fireface 800
BNC cable from HPX300 TC Out to LTC In on TCO of Fireface 800

Fireface 800 with TCOFF option installed (unit #CEC69178, device driver 2.77)

Fireface Audio Device Page Settings (version 3.06):
Clock Mode: Autosync [Status: Input LTC & Freq. 48 kHZ]
Preferred Synch Ref: TCO [Input Status: Sync]
Sample Rate: 48,0000 Hz
System Clock Status: Mode Slave & Freq. 48 kHz

Fireface TCO Page Settings:
48 kHz
Sync Source: Video (locks also to the alternate LTC setting)
Sync Source Status: lock
Frame rate: 29.97 dfps
Video/Word: 75 Ohm Terminated
MIDI Input: Enable MTC
Frequency Status: near 48,000 Hz
LTC In Status: same as HPX-300 TC
Input State Status: LTC valid, 30 fps, drop, video NTSC

Firewire 400 cable connecting Fireface 800 and a Mac Pro

Mac OS X Version 10.6.7
2.93 GHz Quad-Core Intel Xeon
8 GB 1066 MHz DDR3

Cubase 6.0.5
Device Setup/VST Audio System: ASIO Driver - Fireface 800 (178), Externally Clocked, Control Panel Buffer Size – 512 & Device Attenuation – O db
Project Setup: 29.97 dfps Frame Rate, 48,000 Hz Sample Rate, 32 bit float Bit Resolution (to match Fireface)

Project Synchronization Setup: Timecode Source – MIDI Timecode, MIDI Timecode Source – Fireface 800 (178) Port 1, Cubase – Auto-Detect Frame-Rate Changes, all other settings are left blank/unchecked

Problem (see last paragraph on left of p 91 of Cubase 6 Operation Manual): If Sync on the Transport panel of Cubase is activated, the program does not go into “record ready” mode and the record button does not light up and Sync does not go from Idle to Lock. Get same result whether Sync Source on TCO page is set to LTC or Video. Get same result with TC Out on HPX300 set to either TCG/TCR (outputs TC during recording) or TCG (outputs TC at all times).

However, with Sync on Transport panel at Idle, if check Video as Sync Source on TCO page, click red Record button on Cubase Transport panel to activate, and then check LTC as Synch Source on TCO page, Cubase will start recording at TC of video camera and sync locks. Sync on transport panel locks and records when Sync on TCO page locks (Get same result if go from LTC to Video). With the Cubase MCC Device master set to Online, the correct TC of the video camera is displayed so Cubase is receiving the correct external TC.

Do you have any ideas as to why this setup isn’t working? Do you have any suggestions to get this system working properly?