Higher numbered tracks take precedence over lower tracks.
The A/V clip would be on track 1. Cutaways would be overlaid on track 2. An easy way to do that is to position the red cursor where you want the cutaway to begin, then right-click the cutaway in the bin (top-left) and OVERLAY ON SEQUENCE AT CURSOR.
Drag the overlay clip left or right as desired, to position it. To change the duration of the cutaway, place the cursor on the edge of the cutaway until a bracket [ ] is seen. Then drag the bracket left or right.
If the cutaway video is the same size or bigger than the main track, then that track won't be seen.
If it's smaller, the main track will appear in the background (around the cutaway). This is picture-in-picture.
Size the cutaway, if necessary, using SCALE, ZOOM effects, to fill the frame.
