Make sure that you are using the latest version of Video Edit Magic. To download the newest version, visit:
http://www.deskshare.com/vem.aspxFirst, make sure that the Transition track is not hidden. Towards the left of the timeline alonside the Transition track, you should see an "eye" icon. If this icon is not visible then click it once to display the transition. You should also make sure that both Video 1 and Video 2 tracks are also not hidden.
Next, reduce the Similarity value from the Chroma Transition's Setting dialog. Higher similarity values will render a higher range of color as transparent. This may be affecting the green colored text on your image.
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