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Final Cut Pro and Quicktime 7.3 issues
A lot of people have been experiencing issues with the latest QuickTime version. The most common issue seems to be captures stopping after 10 minutes or so, leaving behind a ridiculously large file. Other people are finding incompatibilities in third party applications that use QuickTime.
The issue seems to stem from the fact that Software Update recommends the update because it is compatible with your operating system BUT it is not compatible with less-than-current versions of Final Cut Pro. So if you have version 4 or 5, you're out of luck, and it appears to be these users that are experiencing the issues.
What a lot of people don't realize is that Final Cut Pro depends heavily
on QuickTime and so any QT updates will directly affect FCP. QuickTime is not just a "feature" of the operating system. It is also worth noting that the latest version of Final Cut, 6.0.2, requires QuickTime 7.3 and will not run well without it.
This is why you should never update a machine in the middle of a production. If you are not in the middle of a production, you should wait to see if other users have issues before installing the update. It is also best to have a cloned version of your hard disk so that you can get up and running again as quickly as possible. For the latter, I would recommend Carbon Copy Cloner
I made a post the other day about downgrading from FCP 6.0.2 to 6.0.1