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....just to make sure you haven't missed it... have you repaired permissions?
The editor I worked with had a similar problem. He had to upgrade FX factory plug ins to the most current version.
I trashed my 1.0.7 fx factory and installed 2.x.x. Still doesn't work. Thought I had to start fresh....gahhhh.
Shizznid, did you have to restart your computer before trying to L/T or did you just install the new version over the old, fire FCP up, and it worked?
Crap. So do I have to trash my FCP preferences? I setup some custom stuff a while back but I forgot what I changed! It's going to be a pain and a half to fix all that again.
Where did you get FCP rescue 6? The site the made it is down.