IMovie '11 preview/play issues?

I just bought iMovie '11 for my MacBook (using OS X Lion (10.7.1)), and I am having this weird issue during playback.
I have placed PNG images (transparent backgrounds) on top of the main background scenes using the 'cutaway' option. When I do a test play, those images will not appear.
When I did the FIRST scene with a cutaway option, the Preview Play went fine. But when I started adding additional cutaways to the following scenes, they stopped showing up on preview, and will only appear when I manually scroll across the frames and/or export the entire project to an M4V.
Anyone else having this issue? It's a bit annoying. I don't want to get fully into a video project on iMovie, only to find that something doesn't work when I have exported the movie.

You will need DVD software either iDVD or a 3rd party app.
Two ways to go.
Approach the Apple store where you bought your iMac and ask them to give you a copy of the iLife 11 disc.
Tell them you need iDVD. Many others have reported that Apple will come to the party.
Otherwise you will need to buy an iLife 11 disc which contains iDVD and install it on your computer.
You can source these discs on eBay, Amazon or Apple stores.
Another way is to buy 3rd party DVD burning software such as Roxio.
Best, Z.

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