Proxy Files?

You do it from the browser. Select a clip in the timeline, press Shift-F to "Reveal in Browser"; control-click, choose Transcode Media... and the check Proxy media and select the desired options for your proxy. [You can do it for several clips at once]

Glad to see that you got the proxy issue figured out. Yes, you select in the viewer. Just switch it back to Optimized/Original before exporting. There will be a warning if you forget, so no need to worry.

I will look at the drop zone question in a while, I am not at my mac right now.

When I drop a clip in a ‘Drop Zone’, where or how, do I edit where the clip starts and ends?

As always, thanks for all your help!!

Much appreciated...

1) in the browser the portion of the clip that you want to use.

2) In the Inspector, click the Drop Zone well, then click the clip you want

3) click "Apply Clip"

Sorry, I am having trouble understanding what it is that is not working.

Please clarify. I am assuming you want to create proxy media for that clip that is in your timeline.

1) With the clip selected, press Shift-F

This will show you that same clip in the Browser

2) CONTROL-click the clip in tge Browser and choose Transcode Media...

Which if steps 1 or 2 is posing a problem? I did not mention Shift-click anywhere...

You cn also use the filter HUD for the browser to show only used clips. Select all the clips, right-click and use Transcode Media.