News theme, clip inside of a clip

On the demo on the apple site for the news theme there is a boy talking with a video in the upper right of a windmill. How can I do this in iMovie?

This is a picture in picture effect. Drag the PIP video onto another clip and select the effect in the shortcut menu that appears.

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    Which computer? There is a label on the bottom.
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    Welcome jdboer to the  iDVD boards..
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