At the bottom of your work area is the My Project box, with a grey box asking you to drag your video here. So hover the mouse over the video file you want to place first, then click and hold the button down as you drag the file from the Media box to the My Project box at the bottom. Release the mouse button and your video should now be in the My Project box. Next, drag your second video clip onto the new available space after the first clip in the My Project box. You should now see both clips next to one another, with a small box between them. This is where your transition will go.
On the media box, select the Effects and Transitions icon, this will open a list of all available effects and transitions. Scroll down to the Video Transitions list, which should already be opened. If not, click the small white arrow next to Video Transitions, this will expand the list for you. Double click on Dissolve, or click the small white arrow next to Dissolve to open the list. Hover over Cross Dissolve with the mouse, click and hold, then drag the transition down to the My Project panel, and into the small box between your video clips. Release your mouse button, and make sure the transition is now showing in the small box.pop over to this website
To get an idea what the transition will look like, click the first video clip in the My Project panel, then hit Play on the Monitor window in the center. Watch as your first video fades into your second video, very professional. If you are happy with it, click create DVD and burn your creation to disk. Sit back and watch your DVD video on your player at home.