I updated to the newest version of LR Time-lapse today. I started working on a rather simple time lapse sequence but neither Adobe Media Encoder nor After Effects is recognizing the .xmp files. When I attempt to import the files they are grayed out, and the image is not supported. Thoughts? Thanks!

I can't explain what you are seeing based on the limited information you provide, I can tell you that I have used LRT, AE, and ME for years with no problems.

If you are using DNG RAW files, I may be able to help you, but will wait for a respond before solving a different problem. If would also be useful to know if you have always had this problem or is is a new problem.

Rich

Which version of After Effects are you using? It should be the latest!
In terms of performance I'd not recommend going with the XMP+RAW files into AE anyway, I'd rather export from Lightroom via LRTExport and bring the intermediary files into AE, if necessary at all. The fastest workflow would be to use LRTimelapse for rendering. When outputting MP4 it delivers even better quality then the Adobe renderer.

Thank you! I will give that workflow a try. Btw, I have the latest versions of AE and Encoder as I have a Cloud subscription and they automatically update. I'm working on Mac OS 10.11.4.

AE should read RAW+XMP sequences fine. However it does not interpret XMPs for JPG sequences.