Glad to hear you have the digital audio connection working from the ADAT to the 18i8.
The video heads in the ADAT are really sensitive and head cleaning should only be done by someone familiar with the procedure. Years ago, I had my ADAT heads cleaned by a pro audio/video repair shop, but the place is long gone. You do not want to use one of those VHS head-cleaning tapes.
ADAT "Err 7" could explain the audio dropouts. The ADAT also has an "interpolation light" which will flash when a read error occurs. It's a star-burst indicator next to the time readout. If that light is coming on often, it might be an indicator of dirty heads -or- bad spots on the tape. If "Err 7" happens often on all your tapes, perhaps a head cleaning is the next thing to pursue.
For the most reliable results, ADATs required high quality recording media such as Apex,Quantegy, or Alesis' rebranded ADAT tape.
Do you have the ADAT-XT manual? There's a lot of good info in there.