On the top video track (at the end of the clip) click on "Event pan/crop", around your video in the box that appears you will see 8 boxes around the video picture. Left click and drag the box "outwards" this makes the video appear smaller, you can then place it anywhere over the other video track. To make it move you will notice a couple of bars at the bottom, you want to use the "position" and add key frames, the best way is to try it out and play with this facility as it is quite easy to sus out.
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