How to edit out selected portions of videos with openshot?

I'm trying to learn now to use openshot and I've viewed several tutorial
videos, including this one: http://www.youtube.com/watch?v=EIxa11ze9E4

However, I still cannot figure out how to edit and cut out selected
portions. I have tried all three methods described in this video, but I
cannot get any of them to work.

I was able to use handbrake to convert a video from .VOB to .mkv (that
was the only option that handbrake offered). But when I open my target
file named workshop2.mkv with openshot, I am unable to get any of the
editing options described in the above video to work.

Worked on this late into the night (early morning) and now today I cannot
even replicate how I managed to get the project description pop-up window
and all of the format options listed to display again as shown in the
screen shot that I uploaded here:
http://www.upquick.com/temp/openshot1807.jpg.

How could one possibly understand which of that long list of format
options to use? (And the list is even longer than appears in this screen
shot.)

The whole thing is mind-boggling confusing.

PS: I also somehow managed to create a file named workshop3.osp ... and
do not know what that is, but it cannot be opened by openshot.



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