I am using the Titling feature and would like to have each letter in the same word a different color. I am unable to do this. Are there any workarounds?

The text tool, defined as an effects generator, uses global parameters.

One parameter is allowed for each element. An element can be a word, sentence, or even a letter. Several elements (letters) can be formed together as a word to produce a multi-color word. Using multiple elements to form a word also allows the use of Key Frames to change characteristics over time. With this feature, one can create such eye-catching effects as movement, orientation, perspective, and more.

Final Cut Pro also supports Photoshop layers, which can be "flown" around a path to create motion - adding extra dynamics to a scene. In this scenario, the letters of a word could be broken up among several layers in Photoshop, then imported into Final Cut Pro to be animated.

Final Cut Pro includes the FX Builder. Using this powerful scripting tool, effects can be modified or written that support any number of parameter adjustments.