Oh my gosh! I was able to get it working! What I eventually had to do was a combination of the suggestions mentioned here. Here is what I did:
1. After much exploring inside the library file (right click-then “Show Package Contents”), I noticed that inside the non-working library there was a second “CurrentVersion.fcpevent” file called “CurrentVersion.fcpevent-journal” (the same except it ended in “journal”). I followed one if the suggestions on this post. Made sure FCPX was closed. Then I copied a backup to my desktop and then trashed this file.
2. Then I followed another suggestion from the replies to this post and I trashed the “CurrentVersion.flexolibrary” file.
3. Then I emptied the trash bin.
The combination of these 3 steps allowed my library to fire back up when I restarted FCPX! I’m still trying to see how many of my recent changes to the project were saved.
I will definitely look into making the auto backup feature of 10.1.1 work, but on another drive so that my boot drive does not fill up so fast!
Thanks for all your help! I really thought I was screwed and that I would have to recreate the project! But this worked!!!!!