Imovie'11 PIP won't place video clip on timeline

Using Imovie'11 (on latest version) and YES I have advance features turned on:
I want to add a PIP clip (or cutaway or side by side).  When I drag a new clip over it and let go the new clip goes before (or after) the existing clip. I don't get the popup sub menu to add the PIP cutaway etc.
I tested with a photo and it works fine - so I know I have advance features turned on.
Any thoughts/help?
Thanks !!!

Hi
Just  a vild thought.
Project window set in:
- Timeline mode (one row of thumbnails) - or -
- in wrapped mode - several rows of thumbnails
Yours Bengt W

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