I realize I’m responding to an old post (as I was looking for a different issue I stumbled on this one)… Did you ever solve your problem with FCP7 freezing during multiclip playback?
The only way I have ever been able to solve that was to copy all of my media (for the multi clip I am editing) onto the Macintosh HardDrive. It seems that my external harddrive was the “bottleneck” and could not feed media into the computer as quickly as FCP needed it so it freezes.
Also, save everything and reboot the computer every hour or so. There is a memory leak somewhere and if you don’t refresh from time to time, FCP will crash. Save early and often is always the best advice.
Finally, you should have at least 8GB of RAM. (you wrote you have 4GB).