You may also want to give a try to Video Copilot’s twitch effect. I’ve used it for this same purpose with 3 key frames. One at the point where both clips will “blend”, one 4 frames to the left, and one 4 frames to the right. The middle frame should have the highest twitch “Amount”.
Since at this point twitch will create the most distortion in the images, the switching of clips will be barely noticeable.
Hope this helps. Cheers!