Hi Pricefairy
"Am I correct in assuming that version 3.04 simply doesn't allow reediting clips once on the sequence? "
You are mistaken.....You can edit clips once placed on the sequence line! I do all mine there. 
Version 3.04 (better to use 3.10 if you want to continue with 3.xx) is just a little little different to 2.41 when it comes to editing a clip on the sequence line.
You can select it and split it just the same way as before, or use the IN/OUT markers in the left preview pane or you can shorten it by dragging the ends in on the sequence line.
One big difference in the version you have is the multiple videotracks. These tracks all act like overlay tracks in that whatever is placed on them takes precedence over what is placed on the lower ones. Imagine you are looking down from the top. The upper tracks hide the lower ones.
Using this idea, cutting your main sequence clip to shorten it or dragging the end in, is no longer a necessary requirement as the next clip can be placed on videotrack 2 above the main sequence where, if it overlaps the main video it will overplay it.
Lengthening or shortening the exposure of the main track below by moving the upper clip to the right or left will, in effect change it exposure time, and in effect its length.
However, logically, you can't lengthen a clip beyond its actual length. So if you drag the upper clip beyond the end of the main track you will actually create a gap.
The only way you can make a clip "longer" is to slow it down.
Note also that even if you have split and removed a portion of a clip, you haven't actually cut it at all. You have simply added some reference data to the project file to mark your changes which are then shown on screen. You can "recover" any "deleted" portion by dragging the end of the clip back to the right. The reference data is then altered to reflect this. However, as noted above you can't get back what you haven't got in the first place.
Nat
