Thank you all for your posts. I wanted to post my resolution in case someone out there runs into this same problem.
After posting, I redid my rig a bit – I did a clean install and swapped out my data drive for a faster hybrid drive. It didn’t help much. I wish I could have added more ram, but my motherboard maxed out at 32gigs.
I finally called Adobe. Here was the culprit – MTS-AVHCD files! Thank you Chris Evens https://my.creativecow.net/Chris-Evans3 for giving me the sage advice about the file formats. I guess my rig doesn’t have the moxie to handle 3 sequences (1hr 45 minutes prior to editing) and 2 audio sequences(five streams in total). Those AVHCD files were big. Each Camera angle was about 23 gigs. Added to that size was the effects I had applied (three way color correction). The Adobe tech thought it could be the file size, the effects, or it could have been that I had deleted the Video tracks from the Audio only sequences. I was nesting sequences rather than just the files to make my MC sequence. I did that because I had five MTS for each camera angle.
So, here was my workflow:
1) made sequence of each camera angle. Added color correction, white balance etc. Exported each camera angle as H.264 using both high bit rate preset and the medium bit rate preset. The difference in file size between high and medium bit rate was sizeable- 23gb versus about 6 gig. The file quality was not that noticeable.
2) Made new sequences of each camera angle using medium bit rate files.
3) added MP4 files to project.
3) Created new Multicam Sequence using medium bit rate files. Edited MC shot as you normally would.
4) Once I was satisfied with the MC edit, I replaced the Medium Bit rate with the high bit rate MP4 files.
5) Exported the sequence for distribution.
I probably could have saved myself the step of replacing the High bit rate files and been happy exporting the medium bit rate considering the project was going to end up on a CD, (at an even lower bit rate), but I was concerned about using “an Export of an Export” .
I used the same workflow with a school play (1hr:30 minutes) I did after this project. I added another camera to this school play and premiere handled it without issues. Thanks again for everyone’s input.