A cross fade is where one image dissolves into the next, or overlaps with it, for transitioning purposes. To crossfade in Vegas you do it one of two ways. Put two clips on the timeline. Click and drag one clip so that it overlaps edges with the other. The more they overlap the longer/slower the crossfade. Or, on separate tracks by fading the end of the first down and the beginning of the one under it up at the same spot on the timeline.