Blue screen option does not appear in iMovie '11.

Hey!
I am running OS X Lion on a 3 year old MacBook.  It's been running great...until today.
I am trying to add a background to a blue screen clip.  I've done it before in Snow Leopard on this machine.  This is my first attempt in Lion.
I have enabled "Advanced Tools" in iMovie '11.  However, when  I try and drag a background over a clip in Event Viewer, I don't get the green "+" symbol, and the background will only land either at the beginning of the clip, or at the end of the clip.
I have deleted my iMovie plist.  No joy.  I have deleted the Library/System Preferences folder.  No joy.
I have created a new user.  No joy.
I am completely out of ideas.  Anyone?  Anyone?

You were correct...I had the order reversed.  What a bonehead!
I hate the way Lion re-opens windows at startup and had done a tweak to stop it from doing so. The "tweak" involved a terminal command and, of course, I quickly forgot what I had done.  I convinced myself that I had disabled the ability of the OS to save, or enable, a change in program preferences.  Man, what tangled webs (pun intended) we weave.
Well, it's all good now.  Thank you very much for your advice.
Vic

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