Advanced iMovie Question

ok guys, im hoping someones smarter than me here cause i really need help.
aright, so i arranged all my clips on the time line, edited them perfectly, and applied a few effects. after hours of work, i went to extract audio, except when i did this, it came out all fuzzy and ruined all my clips. SO, i cant really remember since i havent touched the software in about a year but do you always have to extract audio before applying any sort of effects in order to aviod this problem?
also
i saw a red rendering bar at the bottom of the audio clips when i was extracting the audio...is this new for iMovie HD, cause i never remeber seeing it in the earlier version.

The red bars rare new I think, the audio will be distorted along with your video if you've used any of the time shifting effects on your clips.

To extract the audio, you can select the clip, right-click it and then select 'revert to original'. (This will lose any effects and edits you've made though).