FCP 7 not working with Mountain Lion!!

FCP 7 is not working!!
Once I install FCP in Mountain Lion (10.8) My FCP 7 won't let me open or create new projects shot with a Sony Z5 using Sony HVR-MRC1 to ingest media.
Prior to this I never had any problems with Snow Leopard.
When I try to ingest media FCP freezes and received the message that the application is not responding. For older works I am receiving this message:
Appreciate your help!!

That error is well known and documented. Even if you are on The latest FCP 7.0.3 version, it can still appear.
Moving to FCP X won't help either. FCP 7 projects are not readable in X without third party conversion software.
FCP 7 should work fine in Mountain Lion (Mac OS X 10.8) I have it running in Mac OS X 10.10.2.
Use this free tool to trash FCP Preferences: http://www.digitalrebellion.com/prefman/ Doing so will return FCP to standard settings.
This tool is not free, but it has a trial period: http://www.digitalrebellion.com/promaintenance/ It includes the ability to repair corrupt project files.

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