Read THIS THREAD on the Apple FCP forums about this handy feature.   Apparently Tom Wolsky (whom I learned A LOT from in the past…and apparently keep learning from) knew about this…but didn’t let us in on the discovery. EDIT: YES HE DID, IN A BOOK ON FCP 3.o THAT HE WROTE QUITE A WHILE BACK. A few people in this thread discovered this feature by accident…because they don’t do the standard editing this of putting IN and OUT points when replacing footage.  So this works because of doing something you shouldn’t normally be doing.

What is it?  Transition preservation…replacing a shot sandwiched between two other shots, with dissolves between all of them.  This DOES NOT work with Overwrite…only REPLACE…and only under certain circumstances.  Instead of typing this all out, I am going to show you:


EDIT: OK, apparently this is nothing new.  This has been a feature for a while (the “no IN OUT required thing), and I only now just stumbled upon it.  I have always worked under the assumption that IN and OUT points were required for this task, and they really hadn’t.