If I understand what you are looking for, I would experiment with Levels on Video 1 Clips, to drop the Contrast and also the Levels, and then for Video 2's Clips, you have some choices: either drop the Opacity, or punch holes in it. Otherwise, it will cover the Clips on Video 1. How do you wish to see the "ghosted background" Video on Track 1?
So first I would need to put the video I would like ghosted on video 1
track? and then the one I would like full to be on Video track 2?
I would like to see the ghosted background to look almost transparent,
but still able to see the figures and see what they are doing.
I dont have an exact answer for you but you are on the right track.
You need to play around with Blend Modes and Opacity in combinations on your clips. Getting the combination is the trick!
Be careful about Opacity. It will leave what I call "OPACITY DROPPINGS" any time you touch it. (others call them "opacity keyframes" but what ever ...they are automatically applied and can be a real PITA)
My issue currently is that anytime I change the opacity or blend modes my video that i want to be at full is becoming transparent. What I have is one person talking and then action going on behind him. And i can make the action behind him transparent, but the guy talking is also becoming transparent and you can see the lamp that is behind him.
Screenshots would help. It's hard to picture exactly what is going on based on your descriptions in words.
Is the person talking Keyed, so that the original background around them now held out?
Good luck, and I agree that screen-caps would be very helpful, as I am obviously not picturing, in my mind, what you want, and how you are going about creating it.
The image below on the right is my actor talking describing the scene that is about to go on behind him This is in Video 1 Track. Then the image on the left is the video that i want to be "ghost like" on video track 2 I am aware that I have some consistency issues such as lighting, chair placement, and the drapes, But I am ok with what the final result will be because of that.
When I add a blend mode and play with the opacity a little, I get the result seen below
as you can see both my actor speaking and the action going on behind is transparent. Is there a way to keep the actor in black at full and then blend the background actors behind and make them ghostlike?
I would look into going to AfterEffects and Keying the speaker with the RotoBrush. See this LINK.
To see the "ghosted" background behind, you need to either make the overlaying Video partially Transparent, what you do not want to do here, or "punch holes" in it.
Another option would be to do a PiP (Picture in Picture), and have the speaker in one "box," with the scene in another.
Good luck, and hope that others will offer a method, that is better for you.
I am thinking that punching holes in the video may be my best option. How would I go about doing that?
See the above linked article on RotoBrush in AE.
If you had shot the actor against a green screen, you could do the Keying in PrPro, or in AE.
Otherwise, you have a couple of choices:
If the actor is static (not likely), you could use Track Matte Keying.
You could either apply the Crop Effect to the Clip with the actor, or apply one of the Garbage Mattes.