Apple Final Cut Pro 7 - Manual (Page 1565)

Warning: Be cautious when you select this option, particularly in a shared environment
(such as an Xsan environment) in which media drives are shared for collaborative editing.
If you (or someone else) modifies media files in other applications, Final Cut Pro will not
notify you when clips are reconnected. For example, if someone changes the duration
of a media file in Soundtrack Pro, Final Cut Pro does not warn you that the clip duration
has changed. If you want to ensure that clips are only reconnected when you use the
Open in Editor command, deselect the Always Reconnect Externally Modified Files
checkbox.
1565 Chapter 92 Reconnecting Clips and Offline Media