Hi
The function of allowing you to place the clip at start/end/cursor position seems have gone from the version of VP that I am using (2.41.....sure it USED to be there.. 
) However, your problem of correctly positioning a clip between two others is fairly straightforward.
Just drag the clip from the media list down to the sequence line and then along the sequence line to where you want to add it between existing clips. As you move it along you will see a pink arrow appear as the name of your clip crosses the joins. Drop the new clip when this arrow appears at the join in question and it will insert automatically.
If you add the clip to the cursor position VP will split the sequence and insert your clip,
which can be annoying if you meant to place the cursor beween clips as if you don't get it right it leaves a few frames where the split was made.
Positioning the cursor (if that is your method of choice, is probably best done by zooming in on the sequence at the join and then stepping through a frame at a time using the < > tabs on either side of the "Play" button in the right hand preview pane. When the image changes from one clip to the other add your new bit to the cursor position. Normally this works OK but depending on the zoom may still leave a frame cut off. If you feel this odd frame can be deleted without spoiling your movie, switch to storyboard mode and you will see your unwanted frame. (It will have a small duration value). Right click it and select to delete.
Alternatively you can add your clip to the start or end of your sequence and in storyboard mode... (the sequence is visually shorter in this mode) simply drag your addition along (it will appear as a transparent image) to the joint position and then drop it. It will insert between the two clips. If it goes into the wrong slot, simply drag it along a bit further.
In all of these methods the clips should play along the sequence without any extraneous bits.
Nat
