Apple Final Cut Pro 6 - Manual (Page 752)

Chapter 23 Sequence-to-Sequence Editing 419
III
Making a Section of Clips into a Nested Sequence
Instead of adding a nested sequence, you can also turn an existing range of clips in a
sequence into a nested sequence using the Nest Items command.
To create a nested sequence using the Nest Items command:
1 In the Timeline, select a range of clip items that you want to replace with a
nested sequence.
Note: If the clip items are linked, any items that are linked to those items in the
Timeline are also selected.
2 Choose Sequence > Nest Item(s) (or press Option-C).
3 In the Nest Items dialog, enter a name for the new sequence into which the selected
items will be placed.
4 Choose a width and height (frame size) for the new sequence that will be created to
contain the selected clips.
You should usually use the default settings provided, since these match the sequence
that your new sequence will be nested inside.
5 To move all effects, markers, and audio levels associated with the selected clips into the
new sequence, select the Keep Effects, Markers, and Audio Levels with Clip checkbox.