Hi Damian,
By far the easiest solution would be our Assemble Captions workflow:
http://cpcweb.com/hdtv/assemble.htm
Given the EDL in FCP7 XML format, MacCaption can automatically conform the captions to match the edit. Tedious manual editing of the captions on the FCP timeline is not required. We can even do the conform as a batch process or scripting with other automation tools.
Another advantage is that once the captions have been conformed, MacCaption can export them to any format including QuickTime HD captions for FCP, Avid, and Premiere, and for file-based workflows like HD/SD MPEG-2, XDCAM MXF, web formats like DFXP and H.264, DVD/Blu-ray captions or subtitles, burned-in subtitles, etc. (SCC captions are only good for SD video since they only carry CEA-608 analog caption data.)
MacCaption also works with other NLEs like Premiere Pro and Avid, so you won't be tied exclusively to FCP7 for your captioning needs.
Please take a look at the link above (including the demo video), and feel free to contact me directly at CPC for more info.
Best regards,
Jason Livingston
CPC Closed Captioning