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The function of Archiving Project feature in Premiere Elements is to transfer project from one system to another or to save all media files used in the project plus the .prel project file at one single place. It will exclude those files which you have imported into your project but not used on your timeline.
It helps in moving projects between systems, and also when you want to keep your project plus the media used in it at some place, safe for later use.
However, it will include the entire clips which you have used and not just the portion of the clip you are using.
Thanks for the swift reply John.
I obviously have misunderstood the Archive facility. However, I would appreciate suggestions as to the best method of saving my edited clips for future use in other video projects without loss of quality. I see no point in saving a 10 minute clip when I only need 15 seconds of the footage. I am currently shooting DSLR 1080p 30fps and I am using APE v11. What is the best file format to save my edited clips to if I wish to reuse them?
When I have edited footage, and will want to include that edited material in other Projects, I output the Timeline to a separate file. In my case, I am very concerned with the quality of that output, so choose a format/CODEC to maintain the ultimate quality. This article covers my output options: http://forums.adobe.com/message/4556586#4556586
Some users do not feel that the lossless CODEC's are all that important, and will just choose, say an H.264 CODEC for the intermediate files. As that does introduce additional compression, and a slight loss in data, I go the extra step. You might, or might not, feel that the quality difference is worth the effort. The choice will be yours.
Thanks Bill for the comprehensive reply.