Hi Kevin
Thanks so much for your helpful response. I followed your instructions, and it worked like a charm. Funny you could tell I’m (mostly) a Media 100 editor. Apparently M100 does the V1-add background layer thing automatically. One follow up: while in Graffiti, is there a way to see the output on my NTSC monitor? The Preview>>Display on Monitor selections are all ghosted for me.
By the way, I was pretty impressed with FCP 5 at NAB. I like the multicam editing function a lot – that will be very useful for me.