Your clips probably aren’t long enough. If one or both of the clips actually ends where the cut is that you are trying to cross dissolve, there isn’t anything there for the software to dissolve into. I.e. FCE needs 15 frames from each side of the cut to create the cross dissolve for a 1-second transition. Those 15 frames don’t come from visible frames in the clips, but from the end portions you have already cut out. If you haven’t cut any frames, there isn’t anything for FCE to create the dissolve from.
For a standard 1-second dissolve, cut off 15 frames from the offending clip or clips, then pull them back together and apply the cross dissolve.
Hope that helps…