Is there some way to fade a video and make the edges merge easily with the video underneath it?
Post a screenshot of the unwanted behavior.
What you are looking for may be Premiere's blend/transfer modes. Look under opacity settings in the effects panel and experiment.
Here's a tutorial.
It looks like you are mixing videos with different frame sizes
and different aspect ratios (4x3 / 16x9).
You will need to pick one or the other for your Sequence,
then scale the mismatched footage up or down to fill the frame.
Or... get all 16x9 aspect ratio videos to work from.
I'll definately check that out, thank you very much.
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Another idea would be to apply the Crop effect and use Edge Feather.
Unfortunately Edge Feather only works on a full frame or full frame scaled down, not on a cropped frame.
I would go for a track matte or image matte key.
I completely misunderstood the question!
I would do this in After Effects.
The sample on the left looks like
a combo of masks and keys.
Get Creative Impatience Feathered Crop. It's free!
Sorry forgot all about it the Crop effect now has Edge Feather. I was thinking the old way.