Now, when I go inside it here I can see over on the right that I have the Picture In Picture appearing here, as a default size in the upper right hand corner. I can stretch the ends to any position I want. So at this point of the video it starts, then it ends here. Now it'll appear above it, this is the time in which it will appear. I'm going to drag it from the Desktop and you can see I'm going to drop it right here on the video in the project. Now I'm going to go ahead and use a photo as an example for Picture In Picture. I'm going to drag the clip into the project and it appears there. So here I am in iMovie 09, now I've got a clip down here and an empty project. This is what enables things like Cutaways and Picture In Picture as options. So the first thing you need to do is you need to go into iMovie Preferences, and you need to make sure Show Advance Tools is checked. Instead of just replacing all the video, and leaving the audio track going, we're actually going to have video inside of the video, or picture inside of your video, and you can still see yourself talkig and your audio going at the same time. So in Episode 238 we looked at how to use Cutaways in iMovie 09, now let's look at how to use Picture In Picture, which is kind of the next step. On today's episode let's take a look at using Picture In Picture in iMovie '09.

Video Transcript: Hi this is Gary with MacMost Now.