Hello,
I wanted to know if it was possible to do video overlays in kdenlive.

If you don't know what I mean by "video overlay", here are examples: https://www.youtube.com/watch?v=vRChTmygDF8

Now, in other software likes Sony Vegas, you can set a video channel to be transparent, in order to have these overlays over your actual video.

Is this possible? If it isn't, could you suggest other free software in which it is?

Thanks!

Try adding your overlay video to track one and your video to track two and place a screen transition across the clip.
https://userbase.kde.org/Kdenlive/Manua ... ons/screen
This transition makes the black part of the overlay video transparent.
I tested this with overlay number 9 from your linked youtube video and it works.

Thanks, that worked!