Hi
Videopad keeps the total length of the sequence the same when you add a transition. It doesn't "overlap" the ends of the clips like Movie maker does in a crossfade as this would shorten the overall length of clips.
Borate has described a work around for this and here are some details...
Place you first clip on Video track 1 as normal and your second clip on Video track 2 (the overlay track)
Further clips go onto video track 1.
Overlap the ends of the second clip with the ends of the clips on track 1.
The layout is shown here:....

The overlay clip is highlighted and that's the one which you will fade in/out
Select this clip and then click the little box marked FX. Choose the Transparency effect,
Slide the red cursor line in the effects window preview to the extreme left and then the slider left to show 0% opacity.Click the green cross to set the keyframe.
Slide the cursor along right a short distance or until the background image changes and then the adjust the slider to read 100% opacity.
Do the same in reverse at the end of the clip. You will have set 4 keyframes.
The blue opacity line will now appear as shown here:.. rising up diagonally to the top of the box, staying horizontal and then diagonally down to the bottom right. (The box reads 100% opacity as I have left the cursor line in the middle of the clip for clarity)

When you now play your sequence the clip on track 2 will fade in and then fade out. There will be no still frames, but the overall sequence will be shorter compared with the normal VP crossfade.
You can adjust the crossfade easily by dragging the keyframe markers along to different positions.
It CAN be used in a batch sense like the normal transitions can, - You save your fade-in/fade-out effect as a preset. Group all your upper clips and apply the preset to all of them.
Nat