Hi Seashell
You are correct and the transition behaves as you say. It's academic since normally you wouldn't use a transition completely pulled back to the join but interesting to see how it behaves.
What you see depends on the transition selected I suspect . For example, make a PROPER crossfade as follows...
i.e. Clip 1 fillowed by Clip 2 with a crossfade (say 2 seconds) between them.
Put red cursor line level with the right end of the yellow bar and then pull back the end of Clip2 from the join to just past the cursor.
Put red cursor line level with left end of yellow bar and then pull right end of clip 1 back to the cursor line.
This procedure gives a correct crossfade with both clips remaining in motion.
If you now pull the right hand half of the transition bar to the join and play the sequence you will find you have in fact, removed the fading in of clip 2. Doing it the other way around though it behaves differently-- I get "Building Preview"
Different things happen with other transitions Try it with Fade...
(You don't have to reload the transition....just "Undo"
Still, as I said, its academic but intersting.
Nat