I think it was far easier, and intuitive to adjust clip speed by holding a hot key and adjusting the clips length. Longer = slower, Shorter = faster. This is not only faster but allows you to fill gaps between clips where you wish for a time lapse to happen.
You can do this. You have to first add clip speed to the media you want to change (as with most of the effects, if you have a lot of clips you want to adjust, you can select them first and then when you add clip speed, it will add the effect to all of the selected clips at one time). If you then click the arrow at the bottom of the clip, the effect tray will expand to show you the effects that have been added. When you click and drag on either end of the clip speed effect (which is always at the bottom of the list of effects so you don't have to search for it), when you drag you are actually adjusting the clip speed. Note that there are limits on the speed for audio and at some point the audio will no longer play (it would not be intelligible anyway). When this happens, the audio waveform dims as well so you have a visual that audio will not be rendered for that clip.
Thanks for the reply, thats good to know I can drag the speed clip. All thats needed is to not have to manually add a speed clip effect and separate the audio from the clip. Just hold Ctrl key, grab the end of a clip and drag it, speed is adjusted and at a certain point audio is automatically removed.