I want to create a title sequence. The text generator in Final Cut is quite limiting (only one typeface per entry etc).

Is it a bad idea to create typography in something like Illustrator or Photoshop and import it, then use motion effect to make it move?

not a bad idea at all. just make sure to check out the tutorial on lafcpug.org about making your photoshop image correctly.

Yes, Photoshop titles can work, though excpect a bit of back and forth fixing.

However, whilst you are correct in saying the text generator in Final Cut is quite limiting don't forget it does come with the Boris text generator, which allows far more control.

The Boris Calligraphy generators are great, as mentioned. Boris Grafitti is even better. You should also check out the CHV text generators -- great value. See kenstone.com for a review.

Is it better to use Boris than the other FC text text generator (or another program altogether eg Photoshop)?

The Boris generators are much better than the FCP ones. Photoshop is overkill for most straight forward titles. PS comes into its own when you're using complex graphic elements, though only static of course. However, you can achieve quite complex titles with graphic elements using FCP itself since you can overlay numerous tracks above one another and blend together, and they can be animated and include video as well. Kind of like a mini After Effects. PS does have the advantage of more control and a faster work flow. It all really depends on what you want, but if what you want can be achieved in FCP then why not use it.

I've a feeling FCP 4 is going to be pretty slick when it comes to titles. Don't forget Apple bought that title app (India Titles?) last year.

Thanks for that - I'll check out old Boris.