I am just starting with PowerDirector 7 on Vista and drag and drop is not working. If I try to drag and drop a video clip to either the Master Video Track or the PiP Track the video always has the red circle and cross bar icon which indicates that I cannot drop it on the current track. I have been able to work around this by highlighting the video and clicking either the "Add to Video Track" or "Add to PiP Track" button. My show stopper however is that I cannot add a specific transition between video clips. I get the same continuous red circle and cross bar icon when I try to drag and drop a transition. However, I do not see an option to add the selected transition between video clips, so my video clip workaround does not help for transitions.

I understand the red circle and cross bar appearing when I first click on an transition or if I position the transition over an invalid track. However, it should change to some sort of icon which indicates that it is valid to drop between video clips on the Master Video Track. What am I doing wrong or what do I need to do to fix this problem?

Thank you for your assistance!