Yes, it can. You use the Pan/Crop and the 3D track controls to achieve it.

I'm sure Eugenia meant "track motion" there, not "3D" (VMS has track motion, but not 3D motion).

If you want different videos on the "split screen" -- like two people in different locations talking on the phone to each other -- use the pan/crop tool to crop your videos to vertical rectangles (you can click a button in pan crop to disable the "keep aspect ratio" feature), then use the track motion controls to position one track to the left half of the screen and one to the right.

If you want a split screen to do "cloning" -- ie the same person appears in two different places in the same shot, look at some of the suggestions in this thread:
http://www.sonycreativesoftware.com/forums/ShowMessage.asp?ForumID=12&MessageID=611897

Tim L

You all would not know where I could see some one doing this. I checked Youtube and found nothing.

The Sony Creative Software training department has offered up some good tutorial videos:
http://www.sonycreativesoftware.com/support/trainingvids.asp?prod=moviestudio

Take a look at the Track Motion video. Depending on the look you're going for, you may need to use a combination of Track Motion and Event Pan/Crop. There's also a video for that tool, called Pan/Scan techniques.

Hope this helps.