When you say you can't see the transition, what exactly are you expecting to see? The timeline only shows snapshots of the underlying media (photos or video) and an indication that a transition is present - not a representation of the transition. If you want to see the transition you must play that section of the timeline and view it in the preview area. Or have I misunderstood?
Simple tutorials - have you looked at all the "Show Me How" (may be called something else now) tutorials under help? Very Good.
The help file itself is pretty good (not what we've come to expect from help files)
And as Grazie's always saying, download and print out the manual. It's very good.
Once you've got a feel for the product check out Ed Troxel's newsletter - full of tips & tricks
www.jetdv.com :: Index
Loads of stuff here as well
Sony Vegas Tutorials - Search for Sony Vegas Tutorials on Pixel2Life
In fact there's loads of stuff everywhere. Sorting the wheat from the chaf is the problem.
Enjoy