So I guess the bottom line here is the modify method will change the association of the master clip only, so the associated media file remains linked to the original project. The only way around that is to use the consolidate function to have two discreetly separate sets of master clip/associated media files for each project.

Larry Rubin:

use the consolidate function

And thus, after 5 days and 31 responses, we arrive at the same answer that was given 11 minutes after the question was asked.  

adios,
Carl

 ...and the circle of consolidating life goes on...

so very, very true...

Thanks for all the help though.  Maybe one day there will be a better way.

Larry Rubin:

 So I guess the bottom line here is the modify method will change the association of the master clip only, so the associated media file remains linked to the original project. The only way around that is to use the consolidate function to have two discreetly separate sets of master clip/associated media files for each project.

Not quite. Once you change the master clip association, the media file that is being referenced is still linked to that master clip, now with the new project association. The reason to consolidate is if you want to have that clip available to both projects independantly of each other. Perhaps one project is short term and will be deleted, so you move the "keeper" clips into another project that is long term and consolidate so that when the short term project is deleted you won't loose the media.