After you use Get Media in the Organize screen they are added to the Project Media Bin. So if you go to Edit, Media you will see all the clips you previously added and the new ones. You can then drag them to the Timeline from here.
Under edit, I don't have that option (it's not faded out - it's just not there at all.)
It's there all right, Davalle. Under the Edit tab. It's called the button labeled Project.
(You ARE using version 7, right?)