Apple Final Cut Pro 5 - Manual (Page 505)

170 Part II Rough Editing
3 In the Canvas or Timeline, move the playhead to the location in your sequence where
you want the clip to start (the sequence In point).
4 Now, if you do an overwrite edit, you’ll see that the duration of your clip, defined by the
In and Out points in the Viewer, has been edited into the sequence.
As you can see, defining only three points—the clip In and Out points in the Viewer and
the sequence In point in the Timeline—gives you total control of the edit that’s performed.
Move the playhead to the
location in the sequence where
you want the clip to start.
The new clip starts
where the playhead was.