I feel a bit cheeky just joining this evening and already posting a guide (because I am no expert in anything video related at all).
This is an effect I spent a little time trying to achieve one Saturday afternoon. I posted it in the Pinnacle forums once I had done it and it was quite well received.
Here's the effect (1.5MB)
And here's a PDF I created to explain how it was achieved
Oh, btw, it is written for Pinnacle LE users[/u]