When I have multiple projects in the Media Encoder queue and I go back into a project to edit something in premiere pro CC. Do the edits automatically update in the project? Or do I have to clear the project from the queue and redo the export to Media Encoder. The watch folders are useless as most computers can't render and edit at the same time
If I do, you are all fired.
No, you have to re-queue the project again. When you queue something to AME it makes a temp version of your project at the state which it was queued. If AME worked off of your live project then there would be no point for this workflow with AME because you wouldn't be able to edit while encoding in the background, plus it would be disasterous and there would be all kind of corruptions. What would you expect to happen if you were in the middle of encoding a job but you made some edits to your project and saved?
By default, AME does pause encoding while Premiere is playing back, which helps performance on both sides, but you can disable this option from the AME preferences.
Watch Folders are far from useless too. I use them all the time to pick up my master file and create multiple deliverables and upload to YouTube, all without my interaction.