Project is HDV 720p 1280x720. As explained above, video freezes, stutters etc while audio continues to play (although there is an occasional audio hiccup as well. I have tried all suggestion in the FAQ as well as FCP manual.
Kinda hard to tell you anything without system specs (Machine / Video Card / Sequence Settings / Audio & Video Playback Settings / Control Panel Settings / etc...).
JUST FYI - my problem turned out to be a "buggy" Live Type element from an aftermarket expansion pack. When I pulled this background out of the timeline, everything was as smooth as butter.