Yes, you can work with SMPTE time code in Pro Tools LE. If you're new to the world of Digidesign's new Pro Tools LE/001 or AM III ToolBox systems, you may have heard some rumors that you can't work with SMPTE time code with Pro Tools LE. This isn't true, you can! If you're starting out, and are not sure if you need to work with SMPTE time code, let's consider what you might need to do:
1) You might want to lock up your Pro Tools LE system to a tape machine or video deck.
2) You might want to work with a video source (like a video deck or QuickTime Movie) and "spot" your effects or other audio elements to a specific location in the picture.
If you don't need to do either of these things, then locking to external time code isn't something you need to be concerned about.
While it's true that there is no SMPTE time code *ruler* or Spot dialog for time code (you'll find these in Pro Tools TDM systems, which are focused towards post professionals), Pro Tools LE works just fine for most any basic tasks when locking to external time code with audio or video decks, or working to picture with QuickTime Movies or even spotting events to video decks.