Hi Thank you for your response. I tried that and I am having difficulty figuring out the sequence in which to hit the keyframes to get the desired result.

If you could be more specific I would really appreciate it.

Thanks

Place video on track.
Select event fx and choose black and white.
Choose preset of 100% black and white.
[iYour entire clip will now be b&w./i]
In the lower right hand corner of the fx window is the keyframe controller. You will notice a diamond at the beginning. That is your first keyframe that you just made. It turned the video b&w at the beginning. Now place the cursor at the end of the keyframe or select go to end. With the cursor at the end of the event change the preset back to none. Now your clip will go from b&w at the beginning to color at the end. You can place an intermediate keyframe to hold the b&w for a period of time and start the transformation to color at any intermediate point. To do that set the intermediate keyframe before you set the final keyframe and be sure the intermediate keyframe still has the preset 100% b&w. It will stay b&w between keyframes 1 & 2 and change from b&w to colored (coloured) between keyframes 2 & 3.

I'm not quite following you, although would using Generated Media> Solid Color help you? As you could put a solid color on the track, shorten or lenghten it, adjust the opacity, put a soft border around it, etc.

???