Thanks for the suggestion. I did try that first and just tried it again now. I deleted the cache for both my user and then for all users. I also killed the Daemon and restarted the server. No luck. I get this error in Console still:
12/10/09 10:20:34 AM [0x0-0x14a14a].net.kovidgoyal.calibre Qt: internal: -108: Error ATSUMeasureTextImage text/qfontengine_mac.mm: 1097
Freakin' Quicktime is causing this I know. Just wish I knew what to do to fix the problem. I did also clear all all of Calibre's settings before I tried this again and used a free eBook as the test. No luck. EGADS!