I edit a lot of things the same way you are talking about when you have many clips on video 1 and then just a few where there are mulitple cameras.
If there are only 2 shots (Video 1 and Video 2) here is what I do.
1. Line up Video 2 over top of Video 1 in the proper place.
2. Right click on the clip in Video 2 and select "Unlink" (Unlinking will unlink the audio and video. You do this so that when you cut video 2 you do not also cut the audio)
3. Place the CTI so that it is on your Video 2 Clip and then double click on that clip. This will open the clip in your Source Monitor.
4. BEFORE moving the CTI, Right Click on the tab of your Program Monitor and select "Gang Source and Program".
5. Now turn off the eyeball on Video 2
6. When you scrub through the timeline you will see both your video in both the Program and Source monitors moving. Unfortuantely you cannot just play the video and watch both. You can play it and watch the Program monitor and when you stop the Source monitor will catch up.
7. Use the Cut tool to cut out spots of Video 2 so you can see Video 1.
8. One tip is that if you are going to cut the very first part of Video 2 the best thing to do is to get the CTI where you want Video 2 to start and then use your selection tool to just trim it to that spot. If you cut it and delete it you will loos your video in the source monitor. Not that big of a deal because all you have to do is Double Click on it again and re-select Gange Source and Program, but it saves you from having to mess with it.
If I have 3 or more video clips I just highlight them all and right click and select "Nest". That will make your new sequence for you with all your clips you selected. Just then do a normal Multi Cam edit.
Hope this helps some!
Thanks. I will try this.