Dear Goldwing TX,
Happy New Year, and welcome to the Support Communities!
I’m assuming you have updated your events and projects to the new library structure in FCPX 10.1. The documents below will provide detailed information on how to manage the data in this structure.
Final Cut Pro X 10.1: Updating and working with libraries FAQ
Where does my media go after I update?
Media that you stored inside your original event is stored inside your new library. Media that was linked to an external folder and not copied inside your original event stays in that external folder and is linked to your new library.
Is media duplicated as part of the update process?
No. During the update process, Final Cut Pro creates links between the new Final Cut Pro 10.1 library and the media files in your old projects and events. If you delete your old project and event files, the media files remain in the new Final Cut Pro 10.1 library. If you delete the new Final Cut Pro 10.1 library, the media files remain in your old projects and events. By using these links, Final Cut Pro does not have to copy media files or use additional disk space.
Managing Media with Final Cut Pro X Libraries
Page 4 and Page 9 discuss Managed vs. External Media. Page 13 discusses the Consolidate command.
Managed or external media: Any source media (camera files, audio files, stills, or other movies) may reside either within the library file (as managed media) or outside the library file in a folder located anywhere on a hard disk or network. A managed library provides a convenient way to copy or move all of the media files associated with a single production.* External media, on the other hand, makes sharing media with multiple users easier. For example, you can store external media on shared storage
such as a storage area network (SAN).
If you want to share access to managed media, you can convert it to external media at any time using the Consolidate command. You can also use the Consolidate command to collect external media as managed media inside the library for easy transport or archiving.
For comprehensive documentation on Final Cut Pro X 10.1, including instructions for organizing your libraries and media, see Final Cut Pro X Help at https://help.apple.com/finalcutpro.