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That's what I thought, but I haven't yet discovered how to do this. After doing Punch In/Out, I have the purple markers still showing the extent of the new clip. What I feel I should do (but I don't know how, or even if it's possible) is to split the original clip at the markers (making 3 clips), delete the middle clip, and then cut and paste the new clip, moving it vertically from its original track into the gap. So far I haven't discovered the correct combination of mouse clicks, keys, and/or menu options to achieve any of this.