I actually have it working - though I haven't tested it yet with the Panasonic. I have imported clips into FCP and it shows up as a 59.94 (not 59.97, my typo) 1920x1080i clip.
I did put the DVI Detective in the chain - set to the 1080i/59.94 preset. In the Displays Control Panel I set the advanced settings of the DVI Extender to a refresh rate of 29, screen size to 1080i.
In the Watchout preferences I set a custom frame rate of 29.97.
Here's the strange thing: the only way to start the system is with a second monitor hooked up to the VGA output - there isn't a second DVI out on this board - and set up with an extended desktop. Then the DVI Extender works fine and the converted SDI output comes up fine (the DVI out is set up as the primary monitor) and cursor and selections work normally. When I start Watchout Display the screens go black until I go on-line, then the start up screen goes on briefly (unless updating when it shows update progress) then goes to run the program.
I don't think I can mirror the desktops because of the progressive diplay issue. I'm using an HP monitor that will not interlace.
All of this appears to be repeatable. For the first show I think I'll have an Imagepro on standby - but I'd much rather have $500 in gear tied up than $7500!