Thanks for the response but I think I found the problem. The project that I
was working on had about 40 jpgs and I remember reading that jpgs don't do
well w/CS4. I changed jpgs to psds and the encoder worked okay. I
appreciate your response.
Good news! I do not use JPEG's, but that has more to do with the JPEG compression. As I normally am working from RAW material to start, it's easy to keep things in a PSD workflow, and not bring JPEG's into the mix.
I also Scale, in PS, my images to match my Project Frame Size, rather than let PrPro do the Scaling. I like the Scaling algorithms better in PS and they offer more control.
As for PrPro and JPEG's, I have not encountered an issue. I inherited a Project with 2000+ JPEG's, and they work fine on 19 Sequences in an 8 hour opus. They ARE sized to the Project Frame Size, but there are a lot of them, and nearly each one is animated with Motion>Scale (Zoom), and Motion>Position (Pan), so it is not a simple Project.
Best news though, is that the PSD's are working fine for you.