.. in your case, with that editor, having another editing program for what you are trying to do would be a must. Trying to fade across multi sections of Video's and Images, for some reason, didn't turn-out like I was hoping it would.
.. "you need a twin/dual line editor" to hold the first Video/Image at a 30% level and not use anything transition(s) for the second Video/Image at 70% level for the duration of the Dream section. Now you can add THAT dream section to your AMV and no one would ever know how you did it.
.. I have already erased the AVSeditor from my hard drive. btw, it is a good encoder -- I liked that part of it
.. what you need is a multi-line editor. I believe that any inexpensive editor that does multi-line editing will do. There is a list of Editors on one of the "stickies" at the top of one of these message area's that I know "can help you."
Wish I could be more helpful.