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To see the 20 transitions iMovie offers, click the Transitions button, identified in Figure 5-2. Point to a transition’s name (like Cross Dissolve) without clicking to see a small animated preview of it.
Once you find a good effect, drag its icon out of the Transitions panel and directly into the storyboard area, in the vertical gap between the two filmstrips that you want transitioned. Figure 5-3 shows the technique.