Due to TMM's complete incompetence, I don't think Dimension, or anyone else for that matter, were worried about TMM. I do agree that Cavanaugh's 11/11 shareholder update should have been seen as a huge red flag to Dimension.
Keep in mind, the codec that was shown early to TMM was a codec that supposedly could only be played on the Silicon Graphics/IBM super computer at the time. I understand that it was in the 2000-2001 era that it was adapted for Windows.