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So basically my subject says it all, let me elaborate.

I have a bunch of videos and I want to add transitions, no problems yet, but if I want to add a PiP image, you know like a watermark, transitions stop working.

Is there any workaround? I mean, I could export the movie, with no watermark, and then create a project to use the exported movie and add the watermark. But still this takes a crazy amount of time, and then the final result (movie+watermark) doesn't look as good as the first movie (exported movie)

I will appreciate any ideas or recommendations.

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I think that your second method is probably the worst way to go about it. When you're layering the video, are you able to tell the transition to only apply to layer 1 clip A and layer 1 clip B and to leave layer 2 clip C alone. –  kobaltz Jul 10 '11 at 23:24
    
I don't think I can do that or maybe I don't know how to do that. For example, if the whole video is 3:00, and there are two clips with one transition, adding a PiP that expands all those 3:00 minutes then transitions stop working. I'm not sure if this is even possible anyway. –  Mario Carrion Jul 11 '11 at 19:08

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