On 4 other versions of Lion that we've tested, it works fine with normalize turned on (or off). Perhaps you could try re-downloading and installing QuickTime, since those error reports indicate that some parts of QuickTime are missing. For example, un-installing programs have been reported to have removed parts of QuickTime - maybe that happened? So far yours is the only report of an issue like this.

Have Fun!
Peter Gannon
PG Music Inc.