I run Logic off of both my internal and external hard drives. I use the external HD for downloading/writing to and the internal HD for uploading (ie: running loops, samples and plugins). This helps to keep CPU usage low and avoids lagging/buffering out so everything runs smooth. Somehow I did not format my External HD correctly. I was getting the error because I was trying to bounce files off of my Macbook Pro to a Hard Drive that was formatted for Windows.
If you get this error, first try to change the location of the bounce to the desktop.
If the bounce works then check the formatting of your external drive. (right click the drive and select Get info)
If it is not formatted as Mac OS Extended (journaled), GUID Partition Map you will need to reformat your external drive.
First, copy your external hard drive (if you have space) to your internal hard drive.
Then reformat, using the DiskUtility, to Mac OS Extended (journaled), GUID Partition Map.
Then move the files back to your external drive.
After that my problem was solved.
Additionally, (this may be common knowledge, but...) the apple support person recommended not updating the app or OS until you are finished with any major projects and have bounced STEMs and WAV/mp3 reference files.