Can Blender take two video files and overlay them with transparency? Can Blender take two video files and overlay them with transparency?

Essentially I want to have a video sequence playing while a 2nd sequence is overlayed and also playing, but that 2nd sequence is transparent (think alpha transparency) in order to see both both sequences.

This might have the effect of the classic film ghost to it, where you can see through the 'ghost' to the sequence it has been overlayed on.

Is this possible in Blender?
Yes, this is possible.

To overlay a video, simply layer one on top of the other in the VSE timeline.


To make the top one transparent, simply use the opacity slider in the properties panel. 0 is for fully transparency, and 1 is for full opacity.