This thread has been very helpful, but I’m having trouble making CatDV see the proxies I’ve created. I have my original media in the location E:\Video Projects\B-Roll\General Terminal
I set my Path-Based Proxies location in the proxy manager to E:\CatDV Proxies\E\Video Projects
The names of the files are the same, except the extension. One of the original files is E:\Video Projects\B-Roll\General Terminal\20130123110536.m2ts. The path of the proxy file is E:\CatDV Proxies\E\Video Projects\B-Roll\General Terminal\20130123110536.mp4.
When I click on the video clip in the catalog, the proxy tab does not highlight.
Here’s a image of the proxy manager: 
Thanks for the help.