Have you tried clearing your media cache database? Maybe if you do that aftter it reloads everything it may run correctly again. If that doesn't work I'd attempt to reset your preferences.
Oh yes I forgot to mention i did that plus moved the cache locations to a different drive. I noticed that the drive I had it on only had 500 megs of space left, I thought that might be an issue, but this is happening even after I cleaned and did the move.
One thing I want to ask that is sort of arbitrary is why when after moving the cache location, and you point to the location in the preferences, does the program want to rebuild pek files wven though they are already there in the folder? Makes no sense. I moved the files instead of deleting them just for that reason so it wouldn't have to do that
So i just loaded the project up in CS6 and it works fine... Wierd...