Nat,
Thanks for researching this so thoroughly. To answer your questions:
The project is the result of being opened in 6.10. It was created 2 years ago in VP 2.x. In that version, I set only zoom and sharpen. VP 6.1 changed the zoom to crop AND motion. Whatever "motion" is, it didn't exist in the old VP, but 6.10 has done this to all my old projects. Zoom is gone and replaced with crop and "motion".
The blank at the end was inserted by me in the original. I usually do this since the old VP would wrap to the start of the sequence if I let it play to the end, so a blank of a second or two would give me time to hit the stop button. The second clip was created in the old VP with the "duplicate clip" command (ctrl-d). I suppose this is the same as copy/paste clip in 6.10. I then changed the speed to 60%.
I haven't touched this project in 2 years till I opened it last night in 6.10. I let VP finish building the preview and then, voila. What you see.
I guess I need some more education about terminology in 6.10. You say you put the raw file in the "Clip bin". I don't see such a bin. The file displays in the "video files" bin on my computer, as I would expect. What is the "clip bin" and how do I display it?
As you pointed out, the export is fine. I have found this to be always true so far with 6.10. Whatever bizarre shenanigans preview does, the exported file behaves correctly. I have even found occasionally that exporting can "heal" preview somewhat, in the sense that after exporting, exiting VP and playing the exported video to see if it looks OK, then reopening VP, it does preview much more smoothly, as if it "learned" how to preview by exporting first! Not every time, mind you, but often enough that it makes me wonder. Maybe this is a hint for the developers.