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The exact same thing happened to me. Compressor errored out "can't connect to background" or something like that. Also, DVDSP 4 refused to encode. The background apps hung up and wouldn't work.Be careful with that. I just went through the same thing. I have a dual 2.0 G5 and a powerbook. FCP ran fine but Compressor was a dead dog. I tried everything to get it to work including a clean install and complete revamp of my system. I beat my head against the wall for weeks. I ended up spending 30 hours re-installing Tiger 10.4.11 with FCS 1.0. Everything works perfectly now. Leopard in my opinion needs time to catch up with the pro app software stuff. Just my experience.