Thought I should add this (figured out how to post an image) Below is a simple timecode generator to Arduino interface. You could get the parts at Radio Shack.
Douglas
http://home.comcast.net/~ds-fraser/forumimages/timecode-input.gif
For a total newb to all this, how does one visualize this timecode? Does the xlr jack plug into some sort of display device? I'm looking to drive a motion controlled device that will step based on timecode.