Apple Final Cut Pro 7 - Manual (Page 162)

162 Chapter 8 Adding Video Filters and Transitions
Try This
Add a clip with a transition to a sequence:
Drag Sample Clip 2 from the Viewer to the Insert with Transition section of the Canvas
1
Edit Overlay.
Drag Sample Clip 2 here.
Final Cut Pro adds the clip to the sequence, placing a default cross dissolve transition at
the edit point.
The default cross dissolve
transition is added
between the clips.
Play the sequence to see the transition that you added. 2