let's solve your problem. Please tell me what kind of clips are you placing in the tracking? It is DV, divX, mpg1 or mpg2? If it is captured with firewire from camcorder then it is DV compression, the recommended compression also by me.

Ok, now let's consider that you are in Edit mode with pinnacle 11 ultimate, and you place there 2 DV clips, then you place a transition between them. When you start to preview in edit mode your entire movie at the transition moment the jump occurs? Where the cursor is jumping? If is like that is not normal and I have to check, but I have just pinnacle 11.1 plus not ultimate.

Some suggestions: try another kinds of transitions and see what's happen. If you place a clip and you can't place the other in the same tracking check you standard video to be same (NTSC or PAL, 4:3 or wide)

good luck!