Hi there, I wanted to know if it is possible to add video overlays in Kdenlive (yes, I saw the other post, it doesn't refer to what I'm talking about).

By video overlay, I mean I want to shrink one of the layers and display the video layer over another video. Is this possible, and how? Thanks!

Yes it is possible. Two tracks combined with Composite, one track gets an effect to adjust size and position and you are done. BTW: "Layer" for a video "track" is not an accurate and sometimes misleading term.

I do what your discribing by placing two video tracks on the time line, then adding the 'addition' transition and expanding it to the length I want both videos to be viewable. Then I have to use effects like color etc...to tweak the transparency.