So this is my first using the video editor so I'm not really sure how to do this. With my animation, I want to add an effect where 1 scene would start to fade out and the one after it would start immediately after the first starts fading. I thought the cross effect would work but it justs makes the first one start fading and the second just stays frozen until its time to start. I would move the stripes around to test it but I have this synced with music so there's not much there I can do.
To acheive this effect, use the Gamma Cross Effect Strip.
Next, select which video you want to fade out with the RMB(usually the first video). Then, using SHIFT RMB select the next video.
Finally press SHIFT A and navigate to Effect Strips... and click on Gamma Cross. The cross duration should be the length of the overlapping videos. You cannot change the length of the gamma cross directly, you must increase or decrease how much the videos overlap.
If the videos are directly next to each other, but not overlapping, you can't have the second video start right away because how can the second video start if the first video is still going and they are not overlapping?
Audio Reference Video: https://www.youtube.com/watch?v=beWj_mw0M-I
AudioAs for the audio do as RobinsSea suggested in his answer, insert keyframes along the timeline concerning the audio level of the videos. To do this select the audio track and navigate to the properties panel "N". Make sure your timeline is where you want the audio to begin fading out! Over in the properties panel go to the volume area and hover your mouse over the volume. Then press "i" to insert keyframe. Do the same to complete the fade out, just set the volume to 0 and the timeline where you wish to end.
I have found you can do a video cross-fade using keyframes together with opacity settings for two overlapping video clips... I tend to use a black colour as base. This technique is a wee bit quicker than (although perhaps not quite as visible or flexible as) Gamma-Cross. You would do the audio cross-fade the same way, inserting a keyframe and setting volume at 1.0 where you want the fade to begin, go to the end of the clip and set volume to 0.0 and insert a keyframe there. In the second clip, start volume at 0.0 (set keyframe), then go to the end of the first clip and set volume of the second clip to 1.0 (set another keyframe). Hope this all makes sense.