I very much appreciate the help. I will try out the suggestions for the work arounds.
The file size issue is a killer because Final Cut 7 seems to be much more effecient and effective at managing large projects and large amounts of data. We do selects into sequences, so we have a large number of sequences, with a number of cuts of many clips in each sequence. For rough cuts there will be fewer sequences but many more independent objects on each sequence. So I can’t imagine the situation will improve as the project progresses.
Premiere has such an amazing application foundation, perfect interface, addons like Story and script recognition, but on these basic issues of managing a large amount of material, background autosave, reconnect media, etc., it seems to not have matured yet into being more powerful than FCP 7. I’m hoping that Adobe will rev up their development efforts and match FCPs features so there will be no question for anyone to move from FCP (or avid) to Premiere.