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What format are your video clips, if they are anything other than DV-AVI (type 2) or HDV then the clip will require rendering.
You can delete these temporary render files from one of the options at the top of the editing window... cant recall which one off hand. This will clear your harddrive and then you can render to clear the red line over the timeline for smooth playback.
I'm not sure what AVI Type I'm using. I'll look into it.
As for re-rendering I just deleted the render files from the menu and re-rendered. It made no difference.
Clearing the render files will delete the multitude of large render files that build up over time when working on a project. By clearing the render files and then rendering the timeline all you are doing is cleaning the junk from your hard drive. You will still need to render the clips if they are not DV-AVI or HDV.
Where are the clips from? A DV camcorder, a stills camers???