Hi
"I need to first clarify something...what is the "overlay track? " I'm not seeing it or anyway to create it"
Initially VP only shows two tracks. Video Track 1 and Audio Track 1. However, above Video track 1 is a grey area that can contain further video tracks but these will only appear when clips are dropped in this region (to save cluttering the lower area with unused tracks.) The Audio belong to any clips dropped here appears below Audio Track 1. These additional tracks, labelled Video Track 2...3.. etc are Overlay tracks.
"Here...let me get specific. I have video footage. So I open the file and drag it to the sequence time line. An accompanying audio track is created."
That is correct. The Sequence or Timeline is labelled Video Track 1 and as mentioned, above this (if it contains no clips) is a grey area, if you drag and drop another clip into THIS area it will create another track...Video Track 2. Each will have an Audio Track
Video Track 2 is an OVERLAY track and will play over any part of a lower track that it actually covers, (like Video Track 1) You can drag and drop your clips from the media list to any point on any track or create more overlay tracks which get labelled Video Track 3 etc. each one of which will play over the lower tracks.
If you are relatively new to editing, it is best to use just Video Track 1 and Video Track 2 .
If you click the "Options" tab on the toolbar, (click the chevron to the right of the "NCH Suite" icon) under the "Media" tab you can set where you would like new clips to be added. Set this to "Ask Me"
Now you can add clips from the Media list to a choice of places by just clicking them on the list without the need to drag and drop.
"Now I want to create a lead-in. A title. On either a solid background or on top of a jpg. I want to want to insert it ahead of the foot age, ahead of the video track and ahead of the audio track".
Create your title first. This will be added to the Media list under the "Images" tab and will consist of an image your entered text against a chequered background. The chequered area is transparent.
Add your JPG image to the Media list, or create your coloured blank frame using the steps I outlined in my post above.
If you have set the "Options" to "Ask me", just click the JPG (or the blank frame image) in the media list and when prompted select to "Place on sequence at start" Your JPG or blank frame will appear on Video Track 1 in front of your main clip.
If you haven't set the "Options" then simply drag the JPG (or blank image) to Video Track 1 and then to the left...you will see yellow bars to guide you...and drop it in front of your main clip.
In either case your main video along with is linked audio will be pushed along to the right along Video Track 1 to accomodate the length set for the image or your blank frame.
Drag the red cursor bar to the start of the sequence line and in a similar way as above you now can add the TEXT image to Video Track 2, (the Overlay Track .) i.e select to "Overlay on sequence at cursor" if you have set the "Options" or drag and drop it if you haven't.
Once it is on the track you can grab it and drag it left or right so it is positioned over the JPG image section of Video Track 1. and alter its length so it doesn't cover any of your main clip.
When you now play the sequence from the start, your text will appear overlayed on the image background. For fading etc, see my post above.
Hope this is clearer... 
Nat