Up through Final Cut 6, the speed tools were rather annoying. You could get what you need, but there was usually some kind of work around necessary. Now, in Final Cut 7, the speed tools have been revamped. Things like rippling the sequence are possible, and easy feathering. Ripple Training has a tutorial on the new speed tools.

Find the tutorial here – under Final Cut Pro 7, click on the link under “New Speed Tools.”