Timeline does not contain a sequence, so:
Right click on the clip in the project window: create new sequence from clip (or something like that, not at my editing station right now.
Or drag a clip into the new Item icon right bottom corner project window.
see i got that from the adobe chat window, but I'm on a mac, i dont have a right click, unless i'm not using it right, i've been on a pc before
I am not a mac person, so if you cannot rightclick use the drag option.
Or go to file, new, sequence..
oh i got it, thanks for your help!
Right click = Control Click
You can set up a right click shortcut in System Preferences > Mouse, if you like.