Keep in mind that Ocean's 11 is almost solid green for then entire movie and it had played back flawlessly since we had it in there - 2 different prints of it, 2 different disc sets.

Heres the tally so far:
Play back perfectly: Oceans 11 (2 different prints), Vanilla Sky
Play back poorly and trip in and out of digital from time to time: Beautiful Mind.
Play back great for first hour and then either no time code for long periods of time or the digital is kicking in and out constantly: LOTRs (2 different prints), Ali.

The only time I have seen a report like the one you posted at the top of this page, either the setup was running through an SDDS reader before the dts reader...the film cleaner had been dropped and was exhibiting a strong bounce to the film...or the reader was infact defective.

Definitely it is a reader problem!
When Timecode is lost DTS players will continue playing the soundtrack for 4.5 seconds (right?). So it is "normal" that digital sound will continue if timecode is flickering. Digital will drop only when timecode signal is lost for 4 or more seconds. However having a flickering timecode will not help in system reliability!
I had your same problem with my old readers: some films were read perfectly, other ones not. But my readers were very old. Now that I have repaired them I have absolutely NO problem. Every movie is read perfectly, with NO timecode flickering, in any moment.
I beleive that it is an alignment or a tension problem. Did you read the DTS troubleshooting manual? It contains a lot of helpful hints.
This is what Karen said few posts ago:

"When film is running, be sure the timecode light is on solid and not blinking. An occasional blink is OK but if it blinks a lot, then there is a problem. Usually, a blinking timecode light means bad back tension. This is easily checked by using your finger to gently press on the film as it enters the reader (do this while film is running)."

Let's do this tests and let us know the results.

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I think that print shouldn't stay "loose" in the reader. Try the finger trick to see what happen.
Also, try (while you keep the print with the fingers) to remove the print from the DTS tension roller before the reader. Mine was just not aligned with the reader and caused the print to enter misaligned. I removed the roller and the readers work pefectly. But it is just my case (I have a lot of tension before the reader and the extra roller is not necessary), with platter I believe that extra roller is needed.

Let us know!

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Cory has tried two different readers, I don't think that both was misaligned...

Cory, Behind the reader's plug you can see the revision of the reader. Can you read it?

When I first went to the Galaxy there was one dts system that absolutely would not track. I swapped the reader (and player) and the problem remained with the projector. Turned out whoever had changed belts in the projector last didn't do too good of a job, for when I reset the belt tension, the dts started tracking fine and dandy. Although not a big possibility, it is possible something is vibrating on your projector.

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Also to clarify again, "enough tension" is absolutely incorrect. All that matters is "consistent tension". It can be a lot of tension, or basically zero tension. It only matters that it is not changing (such as a bounce from the payout platter). On Christie platters, better performance can be obtained by removing that spring in the center brain roller completely. Even with the spring removed, the platter will still provide more tension than almost every other platter ever made and will no longer require constant maintenance of relubricating the spring.

Didn't know that about the DTS readers...why wouldn't the DTS reader lose the timecode when jumping between randomly spliced trailers? Just curious how that would work...

DTS uses timecode to tell the player what trailer/feature is running and at what frame it is at. Cut up a couple of trailers and watch for yourself. It'll track your edits perfectly.