If you have not updated your schedule, since January, then now is the time to save the baseline. The current date is not utilized when you save the baseline. The baseline will just copy start/finish/work/duration/cost for all tasks as they are right now.
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And then I was told to save a 2nd baseline, which should reflect the start date of actual condition, which is today. So to do that, after saving basline1, I will first make the status date today, and schedule all activities not started to start after status date, and then I will need to save baseline 1 correct?
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Correct.