MMario - setting the rest resolution to a quarter note did not help - BUT setting the NOTE resolution to an eigth note did get rid of the initial 32nd beat rest and most of the rest of the music lines up much better. Strangely enough though, there are still tied 32nd and 64th notes in the middle of the piece - few enough that I can handle them, though.

Ivan, your idea worked too, with the same scattered tied notes as above. Thanks for finding that other midi. It's a more "disco" version than the one I'm working with, and the intro melody is somewhat different, but it's good to have the comparison.

Mitch, Noteworthy isn't as "smart" as Sibelius - when you copy and paste, omitting the 1/32 rest, you get the exact same notation, just minus the rest. Noteworthy does not appear to have a "quantization" function - as someone pointed out, what d'ya want for $40? I may try the text to midi programs just to see what they can do. The file has a dozen staves, so I imagine I'd have to edit each one.