Create a Project and a Sequence

Create a Project in FCP (File > New Project, or Apple-e). Name it and save it.

A Project is a specific file that contains all your edit decisions and time line constructions. The Project file refers to your media files (Video, Audio, Stills) but does not contain any media files. The combination of your Project file and your media files (there can be many) is needed to edit video.

A Sequence is a timeline. You can have many Sequences in a Project. You can rename a sequence in the Browser window by clicking on it. New Sequences can be created (File > New > Sequence, or Apple-n)