This does not actually merge the two movies but instead inserts a pointer to the inserted movie. If you delete the merged movie then the first one won't play any of the merged video. Look at the size of the original movie both before and after the merge and you will see it stays about the same.

Interestingly enough, while playing around with this I was astounded to see that once QuickTime discovered the merged movie was missing it searched ALL of my drives for it and found the missing movie even if I had renamed it and moved it to another drive!

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It probably didn't actually do the search, but queried Spotlight to see if it could find the actual file (if you moved it, it might have the same filename, date, time, etc.).

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He said he renamed it AND moved it…

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