multi-clip sequence error messages

FC 5.0.4
OS 10.4.5
pwrbk 17"
4 gigs of ram
FW 800 external capture drive

I've been cutting thru almost 30 songs and this happens randomly after I've created the multi-clip timeline. It forces a quit and loss of work.

Message: "Sequence error: Unable to add clip to sequence. Possible media limits problem in clip or sequence"

I am cutting 3 cameras in DV format. Using in point references to line up sync.

This message pops up under the following: I select a clip in the timeline and click any of the multi-clip icons (switch or cut video angle).
I am unable to use the razor tool. The clip will not cut.
I CAN SELECT BUT CANNOT DELETE THE MULTI-CLIP SEQUENCE AFTER IT'S CREATED IN THE TIMELINE. The same message pops up when trying to delete the sequence.
I am basically forced to quit the program in order to get rid of the sequence. I lose the time and the whole multi-clip setup process for that sequence.

This does not happen to every multi-clip sequence that I create. Some of them behave fine. I've tried different ways to set up the multi-clip (by adding out points instead of just in points) but it still happens. I've created independent clips then created a multi and it still happens.