Same problem here with a Cinewave System. It happens on the edges of all layers, not only on text! Another “interesting” thing is, let’s say your psd sequence is called “Test Text.psd”, try place a tif or jpg file with names like “Test Text.tif” into the timeline, now look at the name of sequence. It changed from “Test Text.psd” to “Test Text.tif”! Amazing!
Oh, can someone tell me why I no longer can change the audio tracks setting on an offline clip? Control click on the “tracks” or “audio” field on the clip shows “no chortcuts”!!! Man, FCP 5 is buggy.