Try trimming 15 frames or so off the end of the first clip.
You could also try clicking on the transition and in the "properties" box for the transition click on "Center at cut".
Even without trimming, if you go to the "properties" box for transition, in the keyframing area you can drag the transition to forcibly overlap whereever desired.
Right-click on the transition to open the transition properties, then select "centre at cut". Then adjust the Duration as required.
PE is bloody-minded about over-riding your defaults if you don't have enough spare video beyond the in- and out-points on both clips each side of the split. It drives me mad at times. If you have plenty of spare on both sides or none at all on both sides, then the defaults are used. Otherwise...
thank you! That worked perfectly!
- fast forward five years -
In PE10, this intermittent stubbornness has seemingly become more entrenched. Center at cut isn't always offered and the only work around that I've figured out when PE refuses to allow the drag-n-drop transition to be centered was to place the two clips on separate tracks (i.e., A and B), stretch them so that their butt cuts overlap and then manually and individually fade out the first clip and and fade in the second for the cross dissolve transition.
How precisely "handles" are defined and how the user may control them in single instances of refusal or while applying the default transition to a bunch of stills dropped in and along beat markers is unknown to me as a still is really nothing but heads and tails.
- fast forward twenty minutes -
In limited experiments and observations of when the issues presents and doesn't present, it seems that if the frame count of the clip is odd the transition got refused, and when the count was even, the transition centered as expected.
A while back I looked at Premiere Elements transitions at a forum that I used to frequent. The thread started out as a look at how the addition of transitions can increase the length of the Timeline in some video editors (not Premiere Elements) and concluded with focus on Premiere Elements and how transitions appear to work there from my perspective.
You may find it interesting.
Thank guys for the replies and links - I will study them further with interest.
@Bill - Some of the content in your above linked post appeared in another article and helped me in some experiments. I found that by simply altering the frame count of a clip by just one frame, the transition centered itself without objection.
You are most welcome, and hope that you are able to get exactly what you want and need.