Lindsay, this was written for the Pro version of Vegas so if you’re using any of the Movie Studio versions, it won’t work for you.
Follow the instructions that John wrote on the very first screen as they must be followed to the letter.
I’ve modified it slightly in the hopes of clearing up any confusion.
Apply the timecode using the “Media fX” on the clip while it’s in the Media Pool.
Drop the clip on the timeline.
Select the event.
Select “Properties” and then select the “Media” tab.
Use Custom Timecode to adjust the starting point for the timecode on that event (positive time for count up timers, negative time for count down timers).
Assign a cookie cutter to the event, and use the cookie cutter and pan crop to adjust placement, and to determine how much of timecode to show (i.e., what precision to display).
Set Alpha to 0% for generated media that contains the timecode.