Michael, et al,
Here is the scoop with my problem and how things seems to have gotten back to normal:
Firstly, one should always take step one and two in your troubleshooting tips (see Guinness solution). For me it was a couple of martinis, but it's best to step away from one's machine for a little bit and begin to think rationally (a difficut task for me since in my case there would be about 40 hours of editing plus Motion graphics to recover to where I was).
I disconnected both of my external hard drives and launched FCP7 with the same result, but this time I saw a Bias Soundsoap purchase advisory appear. This was a product I experimented with as a trial version some years ago, but never actually purchased (good product, but with Soundtrack Pro it was redundant). I remember deleting the application, but apparently I didn't do as complete of a job as I thought and some of the program's files were still installed on my system. I removed them via these instructions:
After I connected my external firewire dirve that contains my FCP files, FCP7 launched correctly.
Thank you very much for your assistance with this. I used to follow these forums extensively when I was starting out, and your help reminded me why this is such an outstanding resource.
Edited for syntax