How do I do the cross phase between two clips so I can drop in the transitional effect? I have try to drag one clip over the other but it would not give me the "X-zone". It's only stacked on top of each other.
Automatic Crossfades is not enabled. Type Ctrl+Shift+x to enable. There's an icon at the top that looks like a small triangle overtop of another. It's also in the Options menu.