Hi there,
I’m having the same problem with a Kona 2 and 720p25. It plays on my HD monitor but won’t downconvert to my SD monitor under the correct settings in FCP and Kona control panel.
The Kona rep said it was an Apple glitch that they’re working on fixing. The workaround he gave me was to copy the sequence to an uncompressed 8 bit 720p25 timeline and use the 720p 8 bit Kona Video out setting. Very slow and lots of rendering involved but it plays in SD now.
Also a huge hassle to get from the P2 cards into fcp (compared to NTSC) at 25fps but that’s a whole other story.
Gerry