Got the answer. I trashed the Perian component along with QuickTime preferences. It did the trick. I believe it was the old version of Perian causing the conflict with Final Cut Pro’s Log and Transfer option, not the Quick Time preferences but why take chances. When I installed the newest version of Perian which is 1.1.3, there didn’t seem to be any conflict and the HD clips from my Sony SR12 imported fine with no further crashes.
MacBook Pro 17″ 2.33 GHz Intel Core 2 Duo
2 GB 667 MHz DDR2 SDRAM
Mac OS X 10.4.11
Final Cut Pro 6.0.5