Absolutely. I believe that the easiest way to accomplish this is to place your Video on Video Track 1 (VT1), with any Audio on an appropriate Audio Track. Decide where you want your still to first begin "fading in" and place it on VT 2 (above your Video Clip). Adjust the total Duration of your still to suit. Remember, with our next step, we will we adding the fade in, so the still will slowly become visible. You will not really notice it, until into the Transistion. Experiment with the Duration of your still to suit.
Now, just drag a Cross-Dissolve from the Transitions Panel and place it on the Head of the still image. Do the same for the tail of the still image. Do not use a Dip-to-Black here, as it will completely hide your Clip on VT 1, at the start of the Transition. You can use other Dissolve Transitions, so experiment with those, as well.
The material on higher VT's takes prescedence over material on lower VT's. What we have done is commonly referred to as A-B Roll Editing. VT 1 is your A Roll, and VT 2 is your B Roll.