I decided to try the render to new track feature just to see how this feature worked. The results bring up a couple of questions.
I notice that the new track now has it's own new timecode. Does this new timecode refer back to either the tracks below which were used to create this new track or refer back to your original clips which are on your drive as AVI's?
Does both the new track & your original tracks have to remain once it's created for you to continue with your project?