Adobe PREMIERE 5 User Manual page 231

Click the clip you want to fade out.
4
5 Click the clip you want to fade in. Premiere automatically creates and adjusts fade
handles on both clips.
Cross-fading tracks linked to video
When audio tracks are linked to video tracks, cross-fading the audio tracks is more complex
than an audio-only cross-fade. The audio clips linked to those video clips cannot be dragged
to overlap because there is no room for the video tracks to move any closer. You can solve this
problem by overriding the link: Holding down the Control key (Windows) or the Command
key (Macintosh) as you drag lets you move or trim a clip independently of its linked video
or audio.
Cross-fading audio linked to video is useful when performing a split edit or L-cut, where a clip's
video and audio start or end at different times. In one version of a split edit, the audio Out
point is later than the video Out point so that you can continue playing a video clip's audio after
the next video clip's In point. Another kind of split edit is an audio lead, where you want an
audio/video clip's audio to start playing before the video In point.
Note: Cross-fading existing tracks in the Timeline usually requires extending the duration of one
or more audio clips. Whenever you extend the duration of a clip, additional frames must be
available in the clip's source (master) clip beyond the current In or Out point. For example, if you
didn't trim the beginning or ending of a source clip before adding it to the Timeline, the clip is
already using all frames available from its source, so its duration cannot be extended.
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