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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?

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Yes, this is possible.

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

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.

enter image description here

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    $\begingroup$ Why the down vote? Could be useful to know why people don't like it so it can be improved. $\endgroup$ – TARDIS Maker Jul 11 '15 at 17:44
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    $\begingroup$ Also note that the VSE uses a nonlinear reference space, which means that all blends will be "incorrect", including the original question regarding a cross. To properly blend two RGB images, the internal reference must be linearized. $\endgroup$ – troy_s Jul 11 '15 at 19:21
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    $\begingroup$ @TroyJamesSobotka Why is this important? The question was simply about layering two videos, with the top one partially transparent. I don't see why an answer has to be very complex when the question isn't complex in the first place. $\endgroup$ – TARDIS Maker Jul 11 '15 at 19:26
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    $\begingroup$ Thanks @TARDIS Maker, I'll get to grip with some basics and try out your solution tonight or tomorrow and report back. $\endgroup$ – Docconcoct Jul 11 '15 at 20:37
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    $\begingroup$ Exactly what I was looking for. Thank you @TARDIS Maker. $\endgroup$ – Docconcoct Jul 12 '15 at 0:27

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