I had meconium with DD1 but the waters didn't break until her head came out. I was in the bath and the water instantly turned green/brown. No one seemed worried, the midwife fished her out of the water and gave her straight to me. I guess she was watching out for signs that anything might be wrong.

She was born a day before the due day and wasn't in distress that I know of, although the midwife only checked her heart rate once when I got to the clinic two hours before she was born.