Cannot capture video into FCP5

Question

I am trying to import video shot over the weekend into FCP5. Every time I try it get File Error: Unkown File error. Any ideas why this happening?
The camera reads the tape fine. The Log and Capture window works fine, the image shows up, plays, all buttons work. When I attempt to batch capture it tells me how much space I will need, then a window pops up with "Additional Items Found in which I have tried both Add and Continue. Then the Insert Reel window comes up with the tape number, time, 1 clip and Ready. I click continue it goes to the Batch Capture -PREPARING FOR CAPTURE then Creating files and next it immediately goes to Insert Reel window again with ERROR showing behind the 1 clip and File Error: Unkown File. at the bottom. The Show Details button is grayed out.
Clicking capture now in the Log and Capture window immediately gives me the File Error: Unkown File. message.
Capture clip, after I added the original in and out times in the Log and Capture window, goes to the Log Clip window so I can name it, then to the Batch Capture -PREPARING FOR CAPTURE then Creating files and next it immediately goes to File Error: Unkown File. error window.
I have tried two identical camera, one if which I originally captured it with and both had the same result. I was able to capture last week. Only thing I may have updated is iTunes 9.0.1.
I have tried importing via FW400 and I have tried going through a FW800 case that has a FW400 input, then directly into FW800. Nothing worked.
Have FCP 5.1 and all the latest updates.
Thanks

Answer 1

I had deleted the prefs, but the problem was still occurring.
I used FCP Rescue 5 to delete the "settings" and when it restarted I set only my internal HD as the scratch disk (previously I had the capture spread between 8 disks). It works.