Adobe Premiere Pro CC v.7.xx - Manual (Page 317)

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A nested sequence always represents the current state of its source. Changing the content of the source sequence is reflected in the content
of nested instances. Duration is not directly affected.
A nested sequence clip’s initial duration is determined by its source. This includes empty space at the beginning of the source sequence, but
not empty space at the end.
You can set a nested sequence’s In and Out points as you would other clips. Trimming a nested sequence does not affect the length of the
source sequence. Also, subsequently changing the source sequence’s duration does not affect the duration of existing nested instances. To
lengthen the nested instances and reveal material added to the source sequence, use standard trimming methods. Conversely, a shortened
source sequence causes the nested instance to contain black video and silent audio (which you may need to trim off the nested sequence).
Nest a sequence in another sequence
Drag a sequence from the Project panel or Source Monitor into the appropriate track or tracks of the active sequence, or use any of the
editing methods for adding a clip.
You will not have to render audio before editing a nested sequence.
Create a nested sequence from a selection of clips
1. In a sequence, select one or more clips that you want to send to a nested sequence.
2. Do one of the following:
Select Clip > Nest.
Right-click the selection, and select Nest.
Premiere Pro cuts the selected clips from the sequence, sends the selected clips to a new sequence, and nests the new sequence in the original
sequence, starting at the location of the first selected clip.
Open the source of a nested sequence
Double-click a nested sequence clip. The source of the nested sequence becomes the active sequence.
Reveal a source frame from a nested sequence
If you want to reveal a clip in a nested sequence (for example, to edit it), you can quickly open the source sequence at the exact frame you want to
reveal.
1. In the Timeline panel, target the track in which a nested sequence is located by clicking the header of that track. If you target multiple tracks,
the targeted track that is on top is used to select the nested sequence.
2. Drag the playhead to the frame of the nested sequence that you want to reveal in its original sequence.
3. Press Ctrl+Shift+F (Win) or Shift+T (Mac) to open the source sequence in the Timeline panel, with the playhead at the frame you specified in
the nested sequence.
4. Double-click the clip where the playhead rests to open the clip in the Source Monitor.
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