Apple Final Cut Express 4 - Manual (Page 308)

308 Part VI Rough Editing
For example, if you set In and Out points in a source clip and an In point in a sequence,
the Out point in the sequence is determined by the duration of the source clip. In this
case, the sequence In point determines where the source clip is placed, and the source
clip determines the duration of the edit.
However, if you set In and Out points in a sequence and an In point in your source clip,
the Out point of the source clip is determined by the duration between the sequence
In and Out points. In this case, the sequence In and Out points limit how much of the
source clip is placed in the sequence.
For more details about three-point editing, see Chapter 26, “ Three-Point Editing ,” on
page 361.
(1 and 2) Source clip
In and Out points
(4) Sequence Out
point (inferred) (3) Sequence
In point
(3) Clip In point
(4) Clip Out
point (inferred)
(1 and 2)
Sequence In and
Out points