here is a little more info and maybe even a better way of discribing what is going on.
If I take a clip and place it on the Timeline, no effects of any type, and export it as a FUSE or a DVD all works perfectly.
If I take the exact same clip, on the same Timeline and ad a Fade up, (or any other effect) and try to export it, the export fails and I get a "Warning export failed... TC... ETC" and it always fails at the first frame of the clip. after it fails and then comes back to the timeline, all slices turn either Red and get a the big ! or turn Yellow. The Yellow clips do play, the Red ones (all with Classic FX's & Timewarps) go RED.
When I restart the App, its back to normal but no matter what I try when Exporting, it fails.
Guess the next thing I'll try is a reinstall. I have two films that must be entered into festivals by the weekend and have not had the time to really sit at Liquid and de-bug so I'm not sure exactly when this started, nor how I got around it before.
Again I am running the new DX10 patch and XP-SP3