I’ve been away from the forum and busy, so just real quickly here is an answer to the OP about the specific setup involved and I’ll come back later for further discussion:
Hi Beck,
The machine that I have is a Tascam TSR-8.
As for DAW hardware, my interface card is an Echo Layla 24/96 (antiquated, perhaps, but it still runs like a champ on my new Windows 7-based machine and I haven't seen any reason to upgrade it yet). The software I'm running is both Adobe Audition 2.0 and Cubase LE 4 (I don't believe that Audition supports sync options, but I'm pretty sure Cubase LE 4 does...though if I need to find a different piece of software to do this, I will).
You’re setup closely resembles mine… TSR-8, Echo Layla24 and Cool Edit Pro, Which is what Audition was before Adobe bought it from Syntrillium. The Layla is an excellent interface. If anything, many interfaces at that level have become more cheaply made and less capable over the years. It’s also rock solid when following SMPTE/MTC sync, which is another reason to like it. Sync is setup in the Layla control software and is capable of acting as master or slave via SMPTE/MTC. Adobe Audition supports MTC.
I use the TSR-8 as master and the DAW follows flawlessly. Controlling the Layla with the TSR-8 is a very simple matter and no special cables or expensive interfaces are needed. An inexpensive sync box like the JL Cooper PPS-2 or even the original PPS-1 does the trick and you only need standard 5-pin MIDI cables to go from the sync box to the Layla.
MTC does NOT control the system timing at the A/D converter stage, but internally after the ADC.
Bottom line is the OP of this thread has the right combination of equipment to setup the TSR-8 as master and Layla24 to follow MTC for best results in this case.
Not all DAWs are created equal when it comes to MTC synchronization. Some hardware/software doesn’t work as well as others, so either approach to synchronization is valid, but depends on what one owns. That being said, if I had a DAW interface with poor MIDI/MTC implementation I would replace it with something else.
The first two generation Laylas work very well and have two adjustments in the software you can fine-tune if needed for MTC.
I'll address the broader issue later, but just a hint... when a tape machine is slaved to an external device, either another tape machine or a DAW via SMPTE, for starters the wow & flutter is easily doubled at minimum. It's a lot more problematic than that so I'll elaborate later.