Red line with matching red dot imovie 11

Hi All,
I'm just getting to know iMovie 11 and am now only baffled by a few things.. One of which is this red vertical line with a red dot that I sometimes make appear on the timeline... I'm not sure what it's for but would love to know! I've tried searching online to figure it out but I assume because I don't know what it's called, it's very hard to find anything about it...
Does anyone know what I mean and can you point me in the right direction of where to find out what it is and how it's used?
Thanks!

I found a work around... If you copy and paste the video files into the events folder it adds them when you create a new project. I'm not really happy about doing it this way, but at least I can finish editing my clips

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