I am trying to add a photo onto my movie using Premiere Pro CS6.
When I tried to do it, I added it to the "video 1" and the picture came up as a zoomed in photo on the display. Is there a way I can add a photo to the video while still controlling its duration and still being able to see the whole thing?
Also, are there any ways to do transitions to the next clip rather than creating the transition while filming the video?
Select the photo in the Timeline, right click and select "Scale to Frame Size"
This happens because your image files have pixel dimensions which are greater than the video frame size.
Right click on the clip on the timeline and click on "Scale to Frame Size".
Your image will still be cropped and/or letterboxed, if it does not have the same aspect ratio as your sequence.aspect ratio.
You simply drag the transition that you want from the Effects panel onto the join between the two clips in your sequence. Your clips will need to be trimmed to provide "handles" for the transition to work properly. If the transition duration is, say 30 frames, then you will need an extra 15 frames in each clip beyond what is visible on the timeline.