Just thought I would reformulate my problem now that I have a clearer idea of what's going on.
I'm capturing Varicam footage that was shot at 23.98. I used Easy setup24p to capture. Capture footage looks great - its frame rate is 59.94 with the "Remove Advanced pulldown" option checked in. When I drop the captured clip in the sequence, that's where the problems start. The sequence wants to rerender the footage. I looked in the sequence preset, and the Editing Timebase was at 23.98, I switched it to 59.94 and now its fine, the sequence plays correctly. Question: Am I doing the right thing here? Is my footage 24p?