You can use the cookie cutter in the FX options to do this also. It's a bit more limited than track motion but will allow you to get what you want. Put the event you want to pip on the upper track, add the cookie cutter effect, size it with the sliding bar in the pop-up window, move the pip box over the part that you want to show, pick a shape for the box from the drop down menu, feather the edge if you want, etc. Hope that helps.
Randy

thanx all.. i did notice that track motion seems to want to keep the clip at it's current aspect ratio.. anyway to change just the width or just the height independently??
i'll try cookie cutter next..

To expand a little, you can key frame the PIP event within the Cookie Cutter pop-up window also. Other options include selecting if you want everything outside of the PIP window excluded or the opposite, float the PIP window over the clip over time (key frame), mirror, X and Y axis adjustments, etc. One thing that you can't do in Cookie Cutter easily is get the whole clip to float in the PIP window (like you can in track motion). You have to use a combination of pan/crop and Cookie cutter with key frames to make that happen. One reason track motion is so cool. Hope that gives you what you need.
Randy

If you're feeling adventurous you can use track motion and cookie cutter together! I can't say it looks good, but you've got options!

Ian G.

Newbie (very amateur, can't even call it that), Vegas Movie Studio + DVD Platinum 7

How do you do that (see below)....?

"In Vegas Studio 6 & 7 this is very easily done with Track Motion. You can resize the clip however you'd like it, place it wherever you want, move it around the frame, add drop shadows, borders, glow, and tons of other options."

In the track header, that area on the left of the timeline with all the track controls in it, click the track motion button. It's the one that looks like a smaller rectangle inside a larger one with a tiny arrow pointing from one corner to another. A new window will pop open on your screen showing the track motion controls. Basically you'll see a background representing the workspace or frame of your video project, and within that a dashed rectangle representing the track. You can move, stretch, shrink, bend, rotate, fold, spindle, and mutilate that dashed rectangle to your heart's content. If you make it smaller, the video track will be shown smaller within the project frame. Move it around to position the smaller video wherever you want it.

Play. Have fun.

How do you get it on a background? I'm trying to put the video clip on the top left corner and place words on the right side (or filling the rest of the screen). Or have like a split screen effect. Not sure how to do that either. (One side video, the other side a black background with words). All your assistance is greatly appreciated.