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OK so I just tried the first approach and continue to fail as "Merge" is grayed out from the Clip menu. Here's a short video showing off my confusion:

http://mtf8.info/multi-clip-merge-fail.mp4

While we're here, I'd also be curious to know what exactly track-0 represents on the right hand side in the "Files" panel? Seems like that panel starts counting at 0 while the track list starts counting at 1. Feels like somewhat of a disconnect?

I'll go mess around with the 2nd approach and will report back if I have anything substantial to report. Thanks in advance.