Is there a way to make an effect like a film projector just munched the film...like a really messed up transition...in addition to of instead of just throwing "film effects" on a clip
www.artbeats.com has their "Film Clutter" collections which have a lot of film type "effects" including damaged film transitions. I believe you can even buy single clips from the collections for a reasonable price.
You can also use Boris RED which has presests for a burning film FX. You can also try and create your own in Vegas using a combo of tools by analyzing what is happenning. A gradient wipe would work with some colors. Pixelan Spicemaster could do this with certain gradient images or create your own. There is also a free plugin called Luminance that works in Vegas for gradient wipes and I have made veg files and ways on to do this in Vegas a long time ago.
I just tried another by using the Vegas Generated Media Noise (standard noise) to animate a random transition for the efect that goes from black to white (or white to balck) that can easily be used to key the effect from your film (video) to a background layer. Tweak the settings for one hole to grow or many holes.
The possibilities are endless when you learn the tools that are there and you experiment. Especially combinations of tools. And they are free.