You are right about the line tool working with strips. It works correctly in surface mode and in the paint room. I'm not having much success in the vox room.
So far I think there are two bugs we are dealing with: 1. The PSD strip bug. 2. A bug in vox room extrude tool (when using "draw with line" or "draw with curve" setting in the e-panel). The problem there seems to be the escape key is not clearing when you hit escape, so you can't draw separate lines. It wants to connect everything. Also, sometimes it doesn't start drawing the first line. Very unreliable.
Pix Jigsaw's post in How to create strips? was marked as the answer