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I didn't think PRE does anything with the source video. It stores project details in and under the folder you select when you create a new project. These project files tell PRE what to do with the clips but does not affect the clips themselves.
To see where the source clips are just hold the cursor over a clip in the Organize tab and up it pops with the path details.
Insanity is hereditary, you get it from your children
Thanks for the tip nealeh! I've located them and in process of transferring to my new computer.
These forums are so very helpful, great support. Beats a drawn out phone conversation with the usually long "hold" times any day.!!!
Also, whenever you want to transfer your project from one system to another, probably you can use the archive project option. With this option the transfer of a project is smooth. The Archive option saves all project files in one folder.