Hi Dougie
In V3.02 this does work. Just try it with two clips with something moving on each clip.
Switch into Timeline mode.
Drag clip 1 to the sequence line and expand the sequence so you can see the thumbnails.
Drag and drop clip 2 onto the overlay track. That's video track 2
Arrange it so it overlaps the end of clip 1 by 3 seconds. (Refer to the times above the tracks.)
If you play the sequence it this point clip 2 will cut in and overide clip 1
Now- Click the yellow star at the start of clip 2
This will open up the effects control panel.
Slide the "Opacity" control slider to the left. This renders all of clip 2 transparent...That is 0% opacity.
On the right of this section you will see the blue horizontal opacity level line move down to the bottom of its box.
Now-Left click the insersection of the blue level line and the red cursor line.i.e. the extreme left end of the blue line.
This will place a small red square at that point and "fix" the opacity for the start of clip 2 to 0% and anchor the line.
Now move the cursor along click and hold the blue line some way to the right. Another red box will appear at that point.
Drag this marker up to the top of the graph box and position it about 3 seconds to the right of your first marker, but of course at the top of the box. Use the seconds marked along the top of the box to estimate this. Now release the marker.
It will turn to a green box and fix the opacity for the rest of clip 2 to 100%
So, you should now see the opacity line starting at the bottom of the box at the first red marker and rising diagonally up to the top of the box at the second (green) marker about 3 seconds along and then continuing along the top of the box to the end of the clip.
Click "Close" and wait a few seconds for the effect to be registered.
On the sequence timeline you will see the start of clip 2 represented by a chequred area and this should overlap clip 1. Zoom in with the mouse scroll wheel if necessary to check the length of the effect. If it is a bit short, simply click the star again and readjust the position of the green marker. Being a little short is OK though.
When you now play the sequence, clip 1 will continue to play as clip 2 dissolves in and takes over. Both will be movie clips and there will be no still images.
Note that that if clip 1 can still be seen and finishes before clip 2 fully takes over then there will be a partial fade-in of the combination as clip 2, at less than 100% will be playing over a black background. If you see this then you will need to shorten the opacity effect (or the overlap.) It works best if clip 2 is fully opaque before the end of clip1 is reached.
Of course you can also adjust the dissolve effect by overlapping clip 2 more or less without altering the duration of the opacity change.
Give it a try....certainly a bit phaffy but it works. (Unlike zoom 
)
Nat
