I have imported the Google satellite imagery though the OpenLayers plugin. I would like to clip it to a polygon shapefile of New York State.
Is it possible to do this?
I tried the GDAL Tools and it wont let me select the imagery layer.
Googles terms of uses forbid saving, reprocessing or creation of derivative work of google maps data and this is why there is no option to save the Google layer in QGIS.
If you don't care about that ( private noncommercial project, studying, no redistribution, ...), then there are two options:
However, I would advise you to look for other free available sources or purchase your own satellite images!