[Jared Smith]

I know this is an ancient question, but it still shows up in Google, so it’s probably worth answering. There is a way to remove all the gaps at once. Here’s what you do:

1) If you don’t have an empty video track, create one.
2) Put a video in the empty track that spans the entire area with the gaps that need removing.
3) Select all the footage that needs gaps removed and drag it onto the new track so that it cuts holes in the video (take care to move it only vertically).
4) Move the still-selected footage back to the original track (again, only vertically). The dummy video is now all chopped up to exactly match the gaps in the original footage.
5) Select all the dummy video and SHIFT-DELETE to ripple delete it. If necessary, delete the now-empty track.

If your project is so complex that other tracks prevent this strategy from working, you can always cut and paste the gapped-footage to an empty sequence to remove the gaps and then cut and paste it back.