To create video or audio files that you can play in Windows Media Player, point to the File menu and click Make Movie.
If you want only the audio then select WAV from the Output Formats box. To create audio in WMA format, select Windows Media Format. Then from the Include Tracks box, uncheck Video 1, Video 2, Effect 1 and Effect 2 (keep audio tracks only).
Video Edit Magic files (Project Files) contain only shortcuts to media files you use in the Timeline. They are used so that you can save your editing project and later open it for further editing.