about transitions when button is activated...

Hi All,

Lately I have been experiencing this issue with transitions.
Whenever the transitions require footage/still photo overlaping, such as dissolve, or blur, the transition will first fade half way to black then transition to the next screen.
So dissolve, blur and other transitions alike are not smooth at all.
First I suspect it's a problem with handle of the clips in the menu background. But after playing around with the clip starting time and offset, I found that changing these settings didn't help.

I have been using custom transiting for quite sometime, so I didn't notice if the problem came with the newest version of DVDSP; although it hasn't had a new version since FCS2.

has anyone else experienced this? is there a way around it? or did I do something wrong at most fundamental part?

Please help

Thanks