Is this the only transition that's giving your problems? That's strange.
Try doing a repair/install. Put your installation disk into your computer and start and installation without uninstalling the program.
And, as always, double-check to ensure that you have the latest version of Quicktime, which plays an important role in all PC-based video work.
I was able to resolve the problem finally by removing part of one clip and then it would let me add the transistion at that junction. It appears to be working now, I'm still not sure why it wouldn't work there. After restarting I was able to use it at other spots, just not this one.
Well, as we always say, any solution is a good solution. Glad to hear you're up and running again!
I was able to resolve the problem finally by removing part of one clip and then it would let me add the transistion at that junction.
This probably indicates that there were not adequate "Handles," on that one Clip. Had its In, or Out Point, been moved to allow for the adequate number of Frames to add the Transition, it should have worked.
Here are two examples of Handles on Clips for Transitions: