How can I combine two video files into one finished file?

I'm making a video of a guitar player.  I'm using two cameras simultaneously.  One gives the overall wide shot, and the other is zoomed in on his hands.  Both cameras run at the same time.  I would like to use the wide shot as the main video, and occasionally fade in clips from the zoomed in shot to show details of his playing.  I can manually line up both files so they are synchronized.  How do I cut a clip out of the main (wide) shot, leave the gap there, and insert a clip from the closeup?  I'm putting the two video files on two of the video timelines and synchronizing them that way.
Any suggestions on how to proceed?

The effect you are looking for is 'Picture in Picture'. If you want the gap to be there for the duration of the timeline add some 'black video' - from the Tasks Pane> New Item - on the video track above the main track. Resize / position it to where you wish it to be.
Then with your second clip (now on video track 3)
Do the same sizing / positioning for it.
split video and audio and delete or disable the audio.
Cut it where you want the various start/ends of the fade to be.
Delete, or just disable (right-click) the unnecessary segments.
Apply fade in / out to the remaining segments.
[EDIT]
Also check out the 'Presets' in Video Effects. There are a variety of PiP presets that may do what you need.
[/EDIT]
Cheers,
Neale
Insanity is hereditary, you get it from your children

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