Is there a way to turn 5:00 video clip into 2:00 by cutting off the original file?

I think no. The clips are encoded with special datas per user. But a team member will say more about that ?

Only way I can think of is to record a clip using an external program such as Fraps. If you wanted to make a lot of shortened clips tho, this would be very tedious work and the recorded clips won't play in the iS software :/