Sorry if this is too much of a newb question, but like I mentioned before, I'm used to working with Premiere 6.5 with the A/B Editing layout.
In 6.5, you had a main A/B track, and something like a simple dissolve you'd throw in the transitions track, snap each end to the ends of the clips, and you're done.
In CS4, I can't seem to figure out how to properly do this. I'll drag the dissolve transition to the end of the my clip in Video2, but it won't "snap" to the beginning of the clip from my clip in Video1. If I click on the effect and look at the Effect Controls panel, it shows the tradition A/B tracks, but shows the source as being a blank or black screen.
The transition works fine, it's just that it's hard to really snap to the beginning of the next clip, and from the effects tab it almost appears as if I'm using this the wrong way.
One should be able to apply the appropriate Transition to the Head/Tail of the Clip. In PrPro, one does not need to do A-B editing, so long as they have adequate Handles past the In & Out Points. It can all be done on one Video Track. There is no need to do A-B in it.
Specifically in your example: Drag the 4th clip straight down over the beginning of the 5th clip so they are on the same track. Then drop a transition at the point where they meet. Done.
After you do that, click on the transition and look at it in the effect control panel to visually see what it did in A/B visual mode.