The LL Sequence does sound like a good approach based on the description of your application, however you should not expect to miss ANY frames, especially using a camera with a very modest data rate.
The pinout for the 1.7RT camera indicates the CBLANK should be connected to the Enable line, while the pinout for the 1.7LT shows the FLD_INDEX line. This could be the problem, but I am not sure. I will be receiving this exact camera shortly for another project and I would be happy to give you a more difinitive answer once I get a chance to test the camera.
Regards,
Brent R.
Applications Engineer
National Instruments