Upgraded to FCP 7.0.3 and having difficulty with playback

I have opened a project that was working perfectly in FCP 6 in FCP 7.0.3 on the same system I am getting the following alert:
"One or more frames were dropped during playback..."
Mac Pro
My OSX is updated to 10.5.8
Processor 2x3 GHz Dual-Core Intel Xeon
Memory 4gb 667 MHz DDR2 FB-DIMM
Kona Video Card
Any suggestions?

Sequence Settings
Frame Size 1920x1080
Pixel Aspect Ratio Square
Editing Time Base 23.98
Quicktime Video Settings
Compressor Apple ProRes 422 (HQ)
Quality 100%
Audio Settings 48khz
Depth 24-bit
Config Channel Grouped
Camcorder Source Alexa
Transcoded to Apple ProRes HQ 422
Dedicated Media Drive
Fibrenetix Raid
4.55TB 4.21 TB Available Mac OS Extended (Journaled)

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