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That's the ripple insert function of the timeline.
To override it, hold down the Ctrl key as you add your new clips.
There is a very nice tutorial on placing clips on the timeline, and the override of various functions, at http://muvipix.com
Based on when you press the CTRL or ALT keys and when you release them will cause different results. Overlay, Insert, Move, are three of the various options available when placing clips on the timeline.
How do you save, say a Project A in order to add it's clip to Project B? I understand all I need to save to file is the data not .prel file. I just don't know how.
I tried to save it to file on my PC or external HD in the SHARE tab and got nowhere. It wouldn't open in PE4 for adding it to my Project B.
Maybe I didn't save it in the correct format. Hope someone understands what I'm trying to explain.
If you wish to use output from one Project in another, Export and choosing DV-AVI will be what you want. That is the file that you will Import into your second Project.
One little caveat: if you have any Transitions in your first Project - "Project A," and feel that you might want to edit some of these, or some of the Clips with them, you will be best served to do a Save_As, and work from the "copy" of your Project A. Remove all Transitions first, or you will have to shorten each Clip, as you cut out the original Transitions, in preparation for adding new ones. Also, realize that the Clips that you have edited already will NOT have any Handles (used to provide the necessary frames for Transitions), as you will only get the frames in that Clip, once Exported to DV-AVI.*
These are some limitations that might, or might not, need to be considered. It depends on what you wish to do with your Project A Export, once it's into Project B.
* This is one of the nice features in Premiere Pro. You can Import the full Project A into Project B and have a fully editable Timeline for Project A. To date, PE does not allow for this.