Bill, I just sent you a private message through the forum.
Thanks for sending a copy of the FCP XML file, Bill. What appears to be tripping up Premiere is that the audio has mixed channel types. For example stereo and mono. I can think of two workarounds:
- limit the audio content in the source project to clips of one channel type.
- import the FCP XML into a Premiere Pro CS6 project, then open that project in CS7. Note that while CS6 succeeds in importing the FCP XML, a dialog warns of "possible issues encountered during translation," which are recorded in a report (which I did not stop to review, so no clue what those issues are...)
I've entered a bug report and attached your FCP XML to it. As always, no promises as to if/when it will be addressed.