Welcome to the forum.
Unfortunately, you posted into the Tips & Tricks sub-forum, with is a repository for articles on how to do things better, more efficiently, or to just give tips. Steve G. will probably move this post out to the main forum, where many more folk will see it and can answer your question.
In the meantime, let me give you some instructions and also a link to a tutorial on doing what you want to do:
You will want to use Track Matte Keying to get your PiP in the shape and position, that you need. This is a process of limiting the image in your second video, let's call it "Clip B" for this example. Start with your "background" video, Clip A, on your Video Track 1. Drag your Clip B to Video Track 2, above Video Track 1. At this point, Clip B covers up Clip A - obviously not what you want.
In the Effects Panel, there is an Effect, Track Matte Keying. This allows one to create a "window" to view Clip B through, and limit Clip B to a set area. Now, open up Titler, and create a Shape the size that you want this "window" to be, and drag it to the position that you wish Clip B to show through. Make this Shape a white Fill, with no Stroke. It will be a white rectangle on a black field. Drag this Title to Video Track 3, above your Clip A and Clip B,and then drag the Tail of this Title to extend the full Duration (length) of your Clip A and Clip B. AT this point, you'll only see this white rectangle over Clip B. Don't worry, we're going to address that next.
Now, I'd go to Clip B and in the Effects Panel, choose Edit Effects, choosing the Fixed Effect Motion>Scale to resize Clip B, so that it fits about the rectangle on your Title, and then use Motion>Position to place this resized Clip B, to be under that rectangle. In the Effects Panel, find Track Matte Keying (Hint: there is an active Search box, and if you type "track" it will locate Track Matte Keying. Drag that Effect to Clip B. Choose Edit Effects and open up Track Matte Keying Effect. In the dialog box, link to your Title on Video Track 3. Choose Alpha, and then hit Enter to Render this footage. Play and see how well you got Clip B positioned and resized. If you need to alter either the Motion>Scale, or the Motion>Position, turn off Track Matte Keying on Clip B, resize/reposition, as is needed, then turn Track Matte Keying back on.
If you need to resize your rectangle, you can do that by Dbl-clicking on it in Video Track 3, and manipulate it in Titler. If you choose the Selection Tool (Arrow), you can click that rectangle and you'll get the Bounding Box with Handles. Drag the Handles to resize, or click in the middle to reposition that rectangle.
Here's a tutorial featuring Track Matte Keying. It's build around softening skin tones on a young lady, so there are steps that you will not use, but it gives you a good idea of the workings of Track Matte Keying and how the Timeline looks. Just imagine that instead of a blurred duplicate of Clip A, you're doing the PiP with Clip B through the Track Matte Keying.
Note that the beauty of Track Matte Keying is that you can soften the edges of the window, just by adding a Blur Effect to that Title (your Track Matte).
One can also apply the Crop Effect to Clip B, use Motion>Scale and Motion>Position, to do the same thing, but you will get a hard edge. If that is not an issue, then this would be the easiest way to go about your editing. Simple, but with far less in the way of control.
i glad for your help
but theres still a problem
you are still talkign over my head when you repeat things like "A" and "B" blah balh....lol
oook i know how to separate the items on track lines so that part was making me dizzy with repeat procees because the order is making me thiknk of understanding jive talking comuter language
its easyer to tell me open "A" over top "B" then go from there
perhaps theres no easy way to doo-it but tlak this way
wish you culd just goto a yahoo web and show me,then you have to explain how do i open cam at yahoo..which should not be hard to doo
MR. WINE SNOB
take the time to look at this problem for me
when i place "B" over "A"...Im then lost
I tried clicking the matte key and i dont see what the hell its suppose to be doing. it shows some wierd batmna image or a valentime shape
the batman image appears on the "b" frame clip. HOWEVER im lost to how to strench the image to a retangle because the margin key arrows only make the image larger or smaller NOT strench the image or elongate-it
example of course is
i do not want a perfect square image like 5 x 5...i.e..
this box shape is no good ot mee
but need the image to strench to
5 x 9 inches ...i.e..retangle
I am going to spell out a plan. If it works for you great. If not, I tried. The plan is cut down to the bare bones, does not use Track Matte, and may involve a bit of stretched but acceptable Picture in Picture Effect. Here goes. I am assuming that you are using Premiere Elements 7.
1. Place your main photo on Video Track 1.
2. On Video Track 2 (directly above the photo on Video Track 1) place you photo that is to be the "picture within the picture".
3. Go up to the top of the window to the Edit Tab (Orange in color) and click on it. In the row underneath the Edit Tab, click on the tab that says Effects.
4. To the right of the panel that opens, you should probably see "Video Effects". Change that to "Presets" by clicking on the tiny arrow to the right of the words Video Effects. Select Presets from the drop down list. In the Show All List (to the right of where its says Presets), select PiPs.
5. For this example, click on the PiP 25% LL (a blue border will highlight your selection there after you click on the choice.) Make sure that you have highlighted the photo on Video Track 2 (highlighted, it's title bar should have a deep purple color). Then click "Apply" in the Effects area.
6. Now click on Edit Effects at the bottom left of the Effects Panel.
7. You should now be in the Properties Palette for the photo highlighted on Video Track 2. Click on the arrow to the left of the word Motion to expand the Panel to reveal its properties. This is going to be the key to get your photo in a rectangle shape.
a. UNCHECK "Constraint Proportions" in the Motion Panel where we have properties for Position and Scale.
b. You should have Scale Width as well as the Scale Height sliders available there.
c. To scale the photo horizontally (left and right sides scaling at the same time), hold down the Alt Key of the computer main keyboard and at the same time move the Scale Width slider to the left or right (for smaller and larger respectively). To scale the photo vertically (top and bottom sides scaling at the same time), hold down the Alt Key of the computer main keyboard and at the same time move the Scale Height slider to the left or right (smaller and larger respectively).
Nothing above is written in stone, for example, you could use the PiP 40% LL, etc. For now, you just want to use the static versions, not the spin ins or out, etc. Besides scaling your photo in Video Track 2, you can use the Position in the Motion Panel to change the photo's position with those dial in number for position locations there.. You could also, just click and drag the bounding box corners in the Monitor for either Position or Scale.
This may or may not be the ideal way to achieve your goal. Judge for yourself. But, it might be a quick and unencumbered way to get close to what you are looking for.
I will be watching for your progress.
The book "Creating Hollywood Style Movies" has an entire chapter "Hollywood Movie Titles: Creating the PiP (Picture-in-Picture) Effect" with step by step instructions, screen images and all necessary files on DVD. RRP US$44.99, CAN$ 53.99, UK£28.99 - although easily found cheaper online.
Insanity is hereditary, you get it from your children
Sorry that I was using "jive talking computer language." I broke things down to the basics of PrE, but it was still obviously not basic enough.
Maybe it's time to do some reading. Here is a great book on how things work in PrE 7, by Steve Grisetti, The Muvipix Guide to Adobe Premiere Elements 7.
It's inexpensive, but comprehensive. It starts with the basics, and then moves up to more involved techniques, like PiP (Picture in Picture).
Unfortunately, even an entry level program, like PrE, requires a certain level of technical thinking. This book will help you get your "head around" the necessary technical aspects.
Let's forget Track Matte Keying. Instead, let's apply the Effect>Crop & Effect>Motion>Scale to your PiP Clip. This will alter its size and then trim as is necessary. Here is a look at what the result would be. We then apply the Effect>Motion>Position to your PiP Clip to locate it, as we need.
Next, I we add a Lower Third Title, that is made up of only a grey rectangle, positioned on the lower third of the screen. I adjusted the Effect>Opacity down, to see through this rectangle. Last, I added a Title with text on the upper Video Track.
Is this sort of what you are looking for?