When I send my timeline from FCP to Compressor and try to compress for a DVD I get the error message
"Failed - Final Cut Pro.app generated an error or unexpectedly quit".
The same thing happens on both my MacPro (with a Decklink Studio card and Desktop Video 9.2) and my MacBookPro (UltraStudio3D with Desktop Video 8.6). Both are running FCP 7.0.3 on OS 10.7.3.
Turning off Blackmagic output solves the problem, so there is a workaround, but it wasn't like that with my former MacPro running Snow Leopard.