To create a Clip, click the scissors icon:
You'll get the menu/options shown below.
Just enter the start and stop time, along with a title and description. We recommend leaving the visibility at "Just me." You can change that and descriptive details at any time. Then click Save.
Your Clip will show up under the Clips link immediately to the right of the Playlists link. You can add Clips to Playlists in the same way you added the whole video. Please note: audio, digital scores, and texts can be added to playlists and audio clips can be created and used similarly.