SteveG,
I am able to go to effects and apply something. There is no obvious 'select all' happening (where it goes white) unless I actually apply the effect. Not sure if that helps you understand? I inserted a quick screencast clip in a another response below that shows what I am seeing in the edit menu. I appreciate your time. I am still convinced there is something really stupid I am doing. I am a producer/writer and I don't touch the program enough (full disclosure)
You can't select clips, because these are only used in Multitrack view. You can't 'split' a file because then it would become two files, and you wouldn't be able to see both of them at once in a single file viewer. There are ways to do this of course - if you want to split a file in two, then you highlight the part you want to split off, copy it and paste this into a new file. To make this easier, you get a choice of several clipboards you can use, and you can store different things in each simultaneously.
Clips work in a different way. They are used in multitrack and when you create one and spilt it, you aren't actually 'splitting' the file at all - just the playback of it; it's still one file. That's the essential difference between the screens; multitrack is non-destructive - if you actually want to make permanent changes to a file, you have to do that destructively, and only one file at a time. A file can be a whole clip, or it can be sectioned (split) and used as many times simultaneously in a multitrack session as you want. When you do this, all you are actually doing is starting its playback in several places, and not actually altering the file at all.