Mastering out HD to SD

I am just completing my first FCP project which was a 2 hour concert shot in HD. I have to output some SD tapes for VH1 and the Hard Rock Cafe. Both want NTSC (anamorphic for the Hard Rock). I have an AJA IO HD which does the conversion on the fly, but the timebase on the sequence is 59.94 (which cannot be changed), and of course my DigiBeta is 29.97. They're not speaking to each other, controlwise. I get a message that says 'unable to perform edit. Please select a valid in point and try again.' My tape is properly blackstriped and works fine with NTSC source material.

I created a new sequence at 29.97 and dropped the whole concert in, but there are one-frame gaps, a lot of them. There seem to be an average of 20 per minute over the first few minutes, so that's about 2400 over the show. Don't really want to fix that! Also the grphics are not scaling, they're coming in full 1280x720. Any thoughts?

Ken Nicholson