Sarcasm is an adjusted stress reaction.

1) Yes, that's totally what it means! You cut out one shot, for example, and title it EP 3_02 TOPH STOMP GREEN BACKGROUND.avi or whatever, and save it in a folder. (This can also be in deference to the processing power of your vidding computer).

2) I have no idea what one does on a Mac, though. Possibly you use the same video editor you'd use to put the vid together later? I have this idea that there are some very high-end video editors that decompose the source shot-by-shot for you so that you don't have to do this, but I could be wrong about that.