Because any FX can be applied at several different locations (clip level, track level, master output) , you need to decide where you want the T/C info to appear as this will determine where it gets applied.
Click the FX icon at the desired location.
Select Sony Timecode and click OK.
That's all you have to do.
Well there's no FX button in the project media area which might explain the confusion. If you RClick the media there though then you'll get the option to add an FX, assuming you want Source TC and not Project TC. The former is usually what you want if you're sending something to a client.
Hi guys many thanks for your help, my wife suspected I had a corrupt file so she installed Vegas onto her computer and the timecode worked great. So we reinstalled it on mine and everything is working fine on mine now. Once again thanks for the prompt reply and yes my wife is a 67 yr and a computer freak, damn arnt I lucky.