I’ve started having that problem and I cannot find a work-around. I tried moving my sequence to the main area of my project and got no response. Every clip on my sequence has changed its name to the sequence name and I’m working on a four hour show.
What’s worse, when I try to duplicate the sequence in the main area, the sequence keeps the same name. If I try to rename Buildv1h to BuildV1i, it renames the old sequence, Buildv1h into Buildv1i, as well. (In other words, it makes both sequences the same name, no copy of etc.) And all the clips inside each sequence take on which ever is the new name of the sequence.
I think there are some major bugs on this version of FCP7 that need to be addressed.