FYI, Apple just posted updates for Final Cut Studio apps.
Notably, the "Close Gap" and "Carriage Return" (in exported XML files) issues have been resolved.
Here are the URLs for the respective release notes for the updated applications (also available in the Help menu of each application):
Final Cut Pro 7.0.3 Release Notes
Motion 4.0.3 Release Notes
Color 1.5.3 Release Notes
Compressor 3.5.3 Release Notes
Apple Qmaster 3.5.2 Release Notes
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The XML export issue seems fixed (in my quick, non-comprehensive testing). It now inserts a CR (carriage return) HTML entity code " " as a line separator for multiple lines of text in generators, etc.
-Dave