I just ran into this problem for the first time. I use FCP only to re-edit my own personal reel and have zero GFX/SFX in my reel, so when I saw the error I freaked out.
I added a 1080p video to the bin and clicked it to play it in the viewer window, however, I got the error message.
Being totally inexperienced, I safeguarded what I had done up to that point and also made a new sequence with the same settings. I dragged the clips onto the timeline and rendered them (yay?!). After render was complete, I simply copied and pasted the clips to their final sequence and no error message came up.
Hope this helps somebody that is also as computer/FCP incompetent as myself!