Figured it out, just moments ago .. I knew that is was to be something completely stupid .. I had contacted a few freinds online that edit with fcp too, no one had a clue. Then I decided to conact a buddy of mine that edits fcp for broadcast, I figured he's sure to know .. Again he was stumped. However when we talked he asked me something .. " I know this sounds stupid but are you set on image and wireframe ?" Naturally I am . but then wondered to myself maybe wireframe is what's stopping the grab tool. since wireframe is to distort or move the frame. I changed the setting to image only on the viewer and voila problem fixed!!! .. I kew it was gonna be something simple stupid .. anyhow if this helps anyone, I'm glad ot have been of assistance ...
PS in my search for the problem I came across a great tool to trash your preferences or restore them .. it's called FCP 6 rescue
http://www.apple.com/downloads/macos...fcprescue.html