In/Out not actually effecting clips?

[Shabbir]

I've assembled a video out of 6 mpg4 clips. On two of the clips, as I was watching them, I hit the flags to mark the in and out times. However when I play the clips it still includes the entire clip, and when I burn out an .avi movie, the entire clip is included. I've included a screen shot of one of the clips with the IN time marker set.

 

Am I doing something wrong, or is this functionality not finished?

 

This is a really great product, by the way.

 

-S