> I recall some users having problems with this feature, have they been
> resolved?
It's not a good way to organize footage -- you'll be at the mercy of your camera operator. But when I've seen people use this feature, most of the time the failure is accounted for by a user mistake (eg. the camera had no date/time set), not a failure of FCP.
If you're going to capture a whole tape without logging, I'd suggest making Subclips.