DV Info Net - FCP 7 crashing with log and transfer

I've been attempting to resolve this over the past few days. Fixing permissions, resetting pram, trashing preferences and using Digital Rebellions Pro Maintenance tools to trouble shoot.

Its crash analyzer has said the media is corrupted however I am able to play the MTS files in VLC and also convert to Prores in clip wrap. While this might be a sort of acceptable short term solution the footage in question is a 2 hour take of an event. Clipwrap is taking the individual MTS and a couple of frames at head and tail are corrupt. I haven't used Clipwrap much but I've never seen this before.

Perhaps this indicates the files are corrupt but FCP now also crashes when trying to log and transfer files I've previously logged and transferred without a hitch. I've also tried using 2 different card readers to no avail. Perhaps I should try from the camera?

Next I tried Clipwrap just doing a rewrap. Corrupted frames at the head and tail with this also as seen in QT playback. When I tried putting them into a native sequence FCP tells me "codec could not be opened" When I tried a second time with a Prores sequence and I tried to render, message said "codec not found. You may be using a compression type without the corresponding hardware card". I've never used additional hardware.

I'm using FCP 7.0.3 with OS 10.7.4. Unless someone has an alternate solution I'm thinking its time for an FCP re install and possibly OS as well? If thats the best advice would you recommend a clean install? Of course if I wipe the drive (which I'd rather not do right away) I'd need to re install all my plug ins but if I go the easy route, just re installing FCP without removing first, I don't believe I need to re install the plug ins, but I'd appreciate confirmation that thats the case.

Thanks for any suggestions