Premiere, overlap videos

I want to have clips play at once, with the top faded slightly so both can be seen. I place the new clip on the project line over the clip I want it to be pairs with, I place it on video line 3 as audio line 2 has the stand alone audio there, and at the moment the new clips video is still tied to the audio. If I placed the clip on line 2 the audio would over write the other audio cutting it. To untether the audio and video I right click either and click unlink.
 
The audio or video can now be moved freely of each other.

I now have just the video, put the clip I want the new clip to appear with is the clip I want to be ontop, and because it has transition effects applied it needs to stay on the track level with the clip next to it. To solve this I right click on the track and click add track.

Then I can choose how many new tacks, as well their position, I want 1 track before the first.

Now I have a new track and can move the clip to it.



After playing it, I notice that the transition effect on the clip is only applied to the image on the clips and there is no actual background colour as part of the clip, it wasn't noticeable before as it black on black.