After 2 submissions, about an hour later when I submitted another sequence from FCP, nothing happened. Though it's weird. There's no little window showing the frames counting up, but the ball is spinning over FCP. But I can work in Compressor. That shouldn't happen if things are right, should it?

The only difference is I added Chapter Markers. Is this another one of those 'known problems' with FCS 2?

This exact issue happened to me when I installed FCP Studio 2 for the first time. This was corrected once I downloaded all the Pro Application Updates. Try that first: If it doesn't work- post back.

-C