My problem is related to a JPG file that I want to use as a logo on my videos. When I add it to Video 2 on the timeline and preview it, it takes all the space on face of the video. Moreover, its not transparent, while it was saved with a transparent background when created. All the transparent background comes up as black background in the playing video.

So what kind of image should I use if I were to add small watermark on the video in lower right corner. and any tips to create it?