IMovie HD won't let me apply transitions...what do I need to do?

Hi I'm a new user to iMovie (5.02), and for some reason I can preview the different Transitions but not apply them. Both the Update and Apply buttons are faded out. Can someone help me?

Hi czboogie - I guess what you figured was to drag the small blue 'T' down to the place you wanted to inset the transition? Same goes for titles. Update is used to edit an existing transition, and Apply is used if you want to insert several transitions at the same time - by highlighting a group of clips first.
Yes, the instructions are not all that they should be - sometimes a bit hard to find. In fact Apple appears to have totally removed the helpful video tutorials for imovie HD - nothing surprises me about Apple's treatment of loyal customers any more.

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