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Once you have your In and Out points set out there are several ways to create your sub-clip 
  1. Click on the ‘Clip’ menu and choose the second option ‘Make Subclip…’.
  2. Right click the Source Monitor and choose ‘Make Subclip…’ from about a third of the way down.
  3. Hold the Control key on a PC or the Command key on a Mac and drag the clip to the Project Panel.  You will get this option