Okay, you definitely have a settings issue as the frame buffer should be 720p DVCPRO HD 59.94.
Do as I said above, use the Kona 2 easy set up I described to get everything jiving.
Now, open the control panel and click on the format tab and make sure the primary (native) format is 720p59.94 and change the secondary (converted) format to 525i29.97. Also, choose whether you want a letterbox, anamorphic, or crop down conversion in the “down:” dropbox. CLick on the “analog out” tab of the control panel and click the secondary (525i29.97) radio button. A downcovert node should come up on the diagram above and you should be good to go.
Jeremy