You apply the border to the image itself – not the track. The border should be tight against the image (of course it’s hard to tell without seeing the image(s)). There’s also a small triangle to the left of the border FX timeline which controls whether the effect is added pre or post pan/crop changes.
As for effects, I’m betting that the crossfade is the best option for 99% of your transitions. However, Vegas has a TON of transitions you can easily add.
Edward Troxel
