I'm not any kind of expert, but in my limited experience (this is my first tax year dealing with treasury income), my zero-coupon treasury bill income was completely included in Box 3 of the 1099-INT. I didn't need to make any adjustments.
I'm not sure what STRIPS are. I'm also not too familiar with the tax treatment you're talking about. I understand there's something with treasuries, where you can either pay tax in the year you realized the interest, or you can spread it out across the years you held the treasury. Something like that. I don't know the details. I only bought very-short term treasuries/bonds, so I didn't do anything fancy.
