Can I do something where I have one video on the screen over another one like on is more clear and the other is over top of it not so clear but visable
Start off by putting two clips on two video tracks, one right above the other, and then pull down the opacity bar on the top clip. Put your mouse at the top of the top clip and it will turn into a hand, and then drag the opacity bar down.
I just tried what autopilot said: 2 videoclips in 2 tracks precisely over each other.
If you click on the tracks, the preview window will show the upper track only.
Now decrease the opacity of the upper track to, say, 60 and something from both tracks is visible.
If there is only one track where you click - or if the upper track is chosen "solo" (clicked on the ! for this track) the decrease of opacity only makes the track darker.
More sophisticated you can use Insert+Video Envelopes+Track Composite level plus insert some points by double-clicking to change the visibility of the two tracks dymamically during the playing.
by saving the pictures and drag and drop them into VMS.
Now click in the middle of the pictures and you will see the upper picture in the preview - then change the opacity in the upper picture and you will have the segull with the sky as background??
If this is working right for you (as it does on my machine) it should be possible to do the same thing with your videoclips... if not, the problem must be in the videoclips or in the codecs for them.
not sure why you are having trouble with the other suggestions but the technique is compositing. There are a number of ways to go about it - some easy, some more sophisticated. A method you might try ( I would use a short little clip of anything to play with to start with) is placing a white solid color mask on line 1 (it says text in the default mode but dont worry about that). It has a little green box near an arrow that usually defaults pointing down - that sets your composite mode - set it to multiply. (also called a composite child) Put your test clip below it (on 2) and set the composite mode to source alpha and then click the arrow beside it so that it is pointing up ( this clip is now the composite parent). Now put your second test clip on line 3. It should default as source alpha with the arrow pointing down. Now all you have to do is play with the opacity of your mask on line one by hovering your cursor over the top of the mask until is says opacity then left click your mouse and drag down the opacity till you are happy.
You can use gradient masks, cookie cutter and more when compositing. You can use your pan crop to place your "subjects" anywhere you want ( say you want a guy talking to himself with a "ghost" of his good conscience on his right shoulder and a "ghost" of his bad conscience on his left - this is very easy to do ).