Suppose you have edited in FCP (7) and done a Send To Color (1.5). Grading is complete and you Send To FCP and all is good.

Now, you make a small edit in FCP (7) and need to re-grade part of the edit. As I understand it this needs to be reconformed, but I am wondering if I am wrong because its not working.

I export from FCP to the XML file, then reconform in Color by importing the XML. So far so good. Grading seems to go as planned, but now what is the official way to get the newly graded sequence back to FCP?

I've had both FCP and Color hang at this point, so what is the exact procedure I should be following once I've got the second grading done?

Once you've made your changes, you can simply send the Color timeline back to FCP. I usually export an XML from Color first, just in case Color hangs or crashes.

Thanks - that's the bit that is hanging - sending it back to FCP.

So, when you save via XML from Color, how would you recover that in the event of a crash? In Color or FCP?

Just import the XML straight into FCP. It should create a new timeline with your new color graded media.