Apple Final Cut Express HD - Manual (Page 353)

Chapter 25 Three-Point Editing 353
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4 If you do an overwrite edit, you’ll see that your clip has been edited into the sequence
so that the Out point of your clip lines up with the Out point you specified in the
Timeline. The rest of your clip has overwritten any material to the left of the Out point
for the duration defined by the In and Out points set in the Viewer.
Example: Editing a Clip With No Specified In or Out Points
Into Your Sequence
If you don’t specify In or Out points for a clip in the Viewer prior to editing,
Final Cut Express HD edits in the entire clip, either to the position of the playhead or to
an edit point specified in the Canvas or Timeline:
1 Double-click a clip to open it in the Viewer, but don’t set In or Out points.
The new clip lines up
with the Out point you
specified in the Timeline.
No In or Out
points are set.