A project file stores information about sequences and assets, such as settings for capture, transitions, and audio mixing. Also, the project file contains the data from all of your editing decisions, such as the In and Out points for trimmed clips and the parameters for each effect. Premiere Pro creates a folder on your hard disk at the start of each new project. By default, this is where it stores the files it captures, the preview and conformed audio files it creates, and the project file itself.
For every project you create, Premiere Pro creates a project file. This file contains the settings you select for each sequence in the project, as well as crucial data about the assets, edit decisions, and effects used in the project.
Premiere Pro doesn’t store video, audio, or still image files in the project file—it stores only a reference to each of these files, a clip, which is based on the filename and location of the file at the time you imported it. If you later move, rename, or delete a source file, Premiere Pro can’t find it automatically the next time you open the project. In this case, Premiere Pro displays the Where Is The File dialog box.
By default, every project includes a single Project panel. This acts as a storage area for all clips used in the project. You can organize a project’s media and sequences using bins in the Project panel.
A project may contain multiple sequences, and the sequences within a project may differ from one another in their settings. Within a single project, you can edit individual segments as separate sequences, and then combine the segments into a finished program by nesting them into a longer sequence. Similarly, you can store multiple variations of a sequence, as separate sequences, in the same project.