An overlay is like a frame or border for your video production. The effect is much like having a moving scrapbook. You can add an overlay to your video production by adding it to the clips themselves or by placing it on its own track.
Placed on the internal track, the overlay is limited to that clip. It appears with the clip and ends with the clip. It is also subject to the transitions on either side of the clip. If you place the overlay on its own track, you have much more control of it. You can stretch or shrink it to any length of time you want and place it anywhere inside your production.
Select Location for the Overlay
Select the clip or location to which to add the overlay. If you want to add the effect to the internal track of a clip, make sure the clip is selected. If you want to add the overlay to its own track, drag the selection line to the correct location.
Select Add Overlay
When you have selected the location for the overlay, select Add Overlay from the tasks pane to bring up the Add Overlay window.
Tip
If you have your Effect Selector docked, you can drag and drop your overlay to the overlay track. If you want your overlay to be on an internal track, select the Edit the Internal Track or Entire Production icon and drag and drop it into the internal track.
Choose the Overlay
After the Add Overlay window is open, use the drop-down menu to narrow your choices and select the overlay you want to use. You can preview the overlay by clicking on the Play icon in the corner of each. When you have selected the desired overlay, click OK.
Note
Because applying overlays is a processor-intensive action, you might not get a clean preview of the effect. You can always preview an effect on a still image or paused frame. Rest assured that as your final production renders, the overlay is applied correctly.
Select Where to Add the Overlay
After you click OK, you are asked where you would like to place the overlay. If you would like it added to the clip itself, choose Insert on internal effect track of selected panel. If you would prefer to add the overlay to its own track, select Add to production.
Edit the Overlay
If you added your overlay to its own track, you can now shrink it or stretch it to the desired length. You can also drag and drop it anywhere along the production timeline.
You can also set a motion for the overlay by clicking on the Motion icon in the Preview taskbar. This determines how your overlay is placed into the production.
You can also choose the Settings window to apply several advanced effects to your overlay. These are covered in 
Use a Chroma Key or Green Screen to Create Special Effects. Creating a green screen effect is simply a matter of applying a chroma key to an existing overlay.
Note
If you add the overlay to an internal track, choose the Edit Internal Tracks or Entire Production icon to edit the internal track of the selected clip. You can shrink, stretch, or reposition the overlay in the internal track editor.
BEFORE YOU BEGIN
SEE ALSO
Launch VideoWave and Change the Production Settings
About the VideoWave Interface
Add Video Files and Photos to VideoWave
Add Overlays to a Slideshow