Expand Video2/Video3 track by selecting corresponding icon to left of timeline. This will show the alpha rubberband in the timeline. You can move the alpha rubberband up and down to get a fade in/out effect.
I use Premiere 6.5, haven't taken the time to figure out if Premiere 6.5 pro is the same or not. Hopefully this gets you going in the right direction.
You can't have it both ways. Either you are using Premiere 6.5 or you are using Premiere Pro.
If using 6.5, then transitions are only available between V1A and V1B, but you can cross fade using the opacity rubber bands as advised above.
If you are using Premiere Pro, transitions are available on any track. Just drag a cross fade (or other)transition onto the start or end of any clip on any track and then drag the inboard end to adjust duration, or open up the effects control window with the transition selected to get full control.
Some PPro transitions work better with both clips on the same track with an overlap. See on-line help.
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