I run about 40 miles a week and do most of that on a treadmill.
You probably don't have the means to calibrate your treadmill, so I wouldn't get too hung up on if you are running exact pace.
To everyone who says it is different from normal running in some way (easier, harder, faster, slower, different stride, etc.), I generally disagree. I believe JTupper posted on here a while ago and said there were some difference in stride mechanics but I got the impression that it was neglible - I doubt much more than one would find over uneven ground, or up hills etc.
As for incline, at regular training speeds, I believe it has been shown that wind resistance is so neglible that no incline is required. That being said some pace charts suggest 0.5 to 2% incline models wind resistance better. I don't like to stretch out my calves too much so I keep it flat.
As for why a treadmill is harder - I hate to say it, but I think people really overestimate how fast they run outside. Many people's 7minute miles are in reality 7:30's, so when faced with an accurate treadmill - they suddenly wonder why they can't run as fast. Anyone that doubts this please go run your runs on a track and check your pacing. I may be wrong, but I find tons of people think they are faster than they are.
The other variable is that on a treadmill there is no unintended pace variation: no stopping for lights, no slowing on a hill, etc. This is more taxing too because there is no downtime.
For those that say treadmills are easier - I say either your treadmill is reading too fast, or you are benefiting from the lack of hills, or wind, or darkness, or heat, and the consistent pacing and soft surface.
So my advice is run for time, on a flat treadmill and use heartrate as your guide.
Bring your ipod (I know), or watch TV and you will get a very solid workout - likely much better than some crappy result due to dehydration or overheating (and yes, I am sure the africans just suck it up, and we are all wusses for not toughing it out - whatever).