Vegas 5 Image Overlay

How do i put an image with a transparent background over the top of my video using vegas 5? I tried importing a photshop image with a transparent background but it just appeared black over the top of my video.
 
It was black?

Well you tried to bring in a PSD file? What file format was it? PNG? GIF? What?

You did a render and it was still black?

What is your PC processor and RAM?
 
It was a PNG file and my processor is the AMD 3500+ with 1 gb of ram. The video played then it cut out to an image on top. I could fade the two together but i still had the black background of the image over the top of the video.
 
'hmmm Interesting... I haven't encountered that. I mean your machine is more powerful than mine... I'll see if I can do a test and see if I get the same results...

You might have to mask the image with the alpha channel from the same image.
You DID export out the alpha channel didn't you?
 
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