Well the clients are not on site to try some of these suggestions out. One thing they did tell me is that everything works fine with a previous system they have MacPro with a previous version of Final Cut (they did not take note of the version). So I am guessing it has something to do with FCP 6.0.2 or 10.4.11 which is required for FCP 6.0.2
thanks for the replies. Will keep everyone posted after we do some test next week.