Audio crossfade appears inactive (grayed out) when adding it to audio transitions

Not sure what I am doing wrong here...
I cannot directly insert audio crossfades into transitions on my audio timeline withought going to the transition point and then clicking sequence > apply audio transition from the main menu. But even then once it is added it appears inactive (grayed out) and I cannot change the lengh or style of the fade...
Another thing that keeps happening is the program keeps crashing. I get the pinwheel of death and I have to restart the program manually. I dont have any other programs open and my computer is quite beefed up so I don't know what is causing this..
Thanks for your help!
Megan

Try trashing the preferences with this free app as a first step.
http://www.digitalrebellion.com/prefman/
I had a slightly similar experience (but no black frames) a month ago, described here.
https://discussions.apple.com/message/17141902#17141902
Message was edited by: Ian R. Brown

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