This is how still images in Final Cut Pro 7 looked to me after installing and updating to the latest version (7.0.1):
This is my dog:
She is not normally purple and green and swirly colored.
After an hour or so mucking about, reinstalling the application, trashing prefs and otherwise performing the usual maneuvers, I decided to take my own medicine and reboot. Why I don't just always do this first — like I tell everyone else to do — is beyond me. But sure enough, it worked.
Ah! That's better! Crazy mutt!