Christopher,
The media Manage box can be a little tricky until you get used to it. The key is the copy selection in the choices. The green bars up top will show you the amount of the original footage in GIGS and the lower green bars will show the size of what you are copying. You need to make sure the lower bars are showing significantly less GIGS (in this case) than the top bar. That will mean you are only taking the footage in the cut, along with any handle size you have designated.
Tony Grocki