Right, I'm new to Premiere and I can't get any of the transitions to work. I have followed a tutorial, but when I select everything and drop it into video 2 creating a virtual video, I just get loads of black and yellow diagonal lines. What's the problem here, and can anyone recommend a good tutorial for transitions?

Think I'm right in saying that only with Premiere Pro onward can you apply transitions to overlay tracks.

With previous versions, transitions only work on Video track 1. What version are you using?

6.5, so I need to buy pro I guess.

Well, there's a way round it for the time being. Might sound a bit clumsy, but it's possible to build up a composite just as if you were using Pro.

If you render out short pieces (with transitions in them) to avis, you can then re-insert them to the timeline. Do this on overlay tracks and you can have all the combinations you want.

If you're familiar with 'virtualclip' do it that way. But the first method is best - takes slightly longer, but it can work well.