Apple Final Cut Pro 7 - Manual (Page 546)

3 In the Timeline, move the playhead to the point in your edited sequence where you want
your clip to end, and set an Out point.
Set an edit point at the
location where you want
the clip to end.
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.
The new clip lines up
with the Out point you
specified in the Timeline.
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 Pro
edits in the entire clip, either to the position of the playhead or to an edit point specified
in the Canvas or Timeline.
546 Chapter 36 Three-Point Editing