Place your images on a track below your video, then adjust the opacity by either clicking and dragging the horizontal green line up or down in the image, or by double-clicking the image and adjusting Opacity setting in the PiP Designer.
This is all basic stuff, and there are some
really great tutorials in the PD16 Tutorials - Updated sticky post (near the top of the PD16 forum) that will help get you up to speed quickly
YouTube/optodata
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