Transitions Preference Setting Missing

I am using Lion on a MacPro tower and just purchased Final Cut Pro X after first using the Trial version.  I went to set my "Transitions" preferences and noticed that I am missing a choice for the transitions setting:
It is my understanding from FCP X training videos that I should have a choice in "Transitions" "Apply transitions using" as illustrated by this image:
How do I go about getting this choice in Preferences?

I did a search and found this which solved the issue:
http://www.larryjordan.biz/fcpx-missing-preference/

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