How to start with a "clean slate"

Appologies for such a simple question, but I want to start off on the right foot here. I've just got Tom Wolksy's FCE2 book and want to get started, but relized that my version of FCE opens a previous project that my wife had started some time ago when we first got the software. Windows and clips are all over the place. I thought using the New Project comand would get this stuff out of the way, but it does not seem quite that easy.
Is there any quick way to make all of this old stuff go away and start with a fresh view of the program as if I was opening it for the first time. Unfortunately, Tom's book (like most really) starts from the ground floor and my work space in FCE is anything but this at the moment, and there is no real direction as to how to get to this point. Thanks for any advice,

1) Designate a Scratch Folder for your new project; create a folder on the hard drive to which you will save your media
2) Open FCE. The old project loads up. From the File tab, select Close Project. You will get an option to Save . .up to you
3) Create a New Project and name the Sequence.
4) From the FCE tab, select System Settings and point that to your new Scratch Folder
5) Save As ... give your project a new name in a folder that you have created somewhere. I save my projects on the system drive where FCE is, not on the scratch disk where the media is stored

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