Hi Zorikh -
Most of the transitions will work fine with the clip as PiP. You just picked one (Blur) that affects the background clip as well.
For the same reason, these are the others
NOT to use in that scenario...
Airplane, Break Apart 2/3, Chain Reaction, Color Circle/Love Heart/Star, Film Strip, Flip Blinds/Boxes/Matrix, Glass 1/2/3, Glow, Grid, Mosaic, Papaer 1/2, Paper Airplane 1/2, Rotate CW, Slide Spin Horizontal, Spiral, X-ray... and Blur!
Cheers - Tony
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