This solved my question Solvedby wetdog160 on Aug 3, 2011 12:31 PM
Yep. Apple didn't have any fixes. The project is lost. Basically they just gave me some safeguard tips to prevent the issue happening again.
1) Transcode media to ProRes before even importing. (I'm using XDCAM files)
2) Copy your timeline, and paste it into a new one periodically to ensure backup.... or something.
3) Always drag media into the project via the browser on the right. Never use the finder. The finder is bad.
Basically all of us long time FCP7 users are going through a world of hurt, just to get one simple video made. I don't even know if I can emotionally handle this rollercoaster. I'm spent.