Picture-in-Picture within Final Cut Pro.

I'm having a hard time figuring out how to display 2 videos playing simultaneously within FCP.
I believe it may have something to do with frames but I can't seem to solve my problem.
For example:
I would like to have a video playing, then I would like that video to shrink down smoothly to about a third of the screen and have a separate video playing in the space that the last video was playing.
A pretty good example is the RT Extreme video one the the FCP site: http://www.apple.com/finalcutstudio/quicktours/
Any help would be greatly appreciated. Thanks a lot.
Final Cut Pro 5   Mac OS X (10.4.8)  

1. Put the video that shrinks on Track 2.
2. Put the other video clip underneath it on Track
1.
3. Animate Track 2 using motion keyframes. When track
2 shrinks, it will reveal track 1 behind it.
So you need to use motion in order to accomplish this or is there a way to do this directly within FCP?

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