if you proxy your session, the clip does not get proxied at allOkay. You don't see that clip in Proxy Folder but if you drag&drop that clip from Clip Folder to the Viewer or to Timeline, it will use its own proxy.
it does not actually proxy the clip. It proxied the nested EDL which was created from the clip when you did the nesting which ended up in the Media folder.Yes, you are right and you explained it very well.
BUT if you try to drag the nested EDL from the Proxy folder, you can not put it on the timeline or in the Viewer to playAgain, you are right, but you can do that from Clip Folder and, there, if you have proxied, then Cinelerrea will use proxy files.
Proxies are only created in the Proxy folder as far as we can tell with the "proxy" as part of the name.I try to explain better.
For me the Nested section in the manual is explained well and may be it needs to add something. However I always must find a workaround to use Proxy and may be that, with my e-mail/screencasts, I confuse all of you. Sorry.the nesting section of the manual seems to me to be unclear and incomplete.