By dropouts, do you mean Vegas starts a new clip during capture, that isn't seemless?
If yes, I have found this happening on my HV30 and XHA1. I found that when I had this problem, I would capture in Adobe Premier, and then use Vegas. It seemed to work fine from there. I never could understand why.
The reason I went to this strategy was that I could capture the same tape twice and the breaks would be in different spots when I would capture with a different camera.
I don't know if this is a Vegas issue. I was using Windows XP and Vegas 8. I just upgraded to Windows 7 and Vegas 9 on my new desktop and haven't captured anything yet, so I don't know if I have the issue still. I still have my old desktop on my network just in case.
Anybody else have this issue? Is this the same issue Mark is having?