Yes. You nailed the issue. The tinted thumbnails in the timeline and the red highlights on the audio clips originated with me labeling master clips red. I checked two different projects to make sure. Until your post I never realized that the colored labels on master clips in the bin carried over to the use of clips in the timeline.
I also wanted to thank the other folks who posted their thoughts and observations as we worked together to figure things out. I hit a period of a heavy workload and did not have the focus to respond before today.
I take to heart that Final Cut 7 and its predecessors are aging. I see that Christopher McDonnell who figured out the labeling angle is still using Final Cut 6. In my case, I will probably be moving to a more recent editing system like Resolve, Premiere, or Avid. There’s too many new formats coming along and new operating systems. But as someone who started in 16mm film and went to Avid and then to Final Cut, I continue to be impressed by how well Final Cut prior to Final Cut X worked. There’s so much depth and detailed thought that went into Final Cut 7 including the carry-over of color labels from master clip to clips in the timeline.
Thanks to one and all,
Christopher Beaver