Can't add transitions between clips in iMovie 10.0.6

I'm just learning iMovie and am putting together a little travel video.

I imported some music, a black background which I added markers to so I could match the music to the video clips, now all I want is a small fade between clips so it's not just a blunt change from clip to clip.

It's a blank theme, have tried switching automatic on and off, when you go to drag a transition between 2 clips it just bounces and there's nowhere to place it!

Any help will be fantastic!
I'll attach a pic of my screen here too
Thanks!

https://drive.google.com/file/d/0B1kR02TH8P-tQlJ5MWR0Q3M0U00/view?usp=drivesdk

You are going about things the wrong way. What you have done make a Project which is essentially just a black screen. Into that you have added some video clips in the form of Cutaways. A Cutaway is:

A cutaway is an important, basic editing technique. That’s when someone on-camera begins talking...and you hear her keep talking, even as the video switches to something different (like something that illustrates what she’s saying, for example). You see cutaways all the time on the nightly news, and in every documentary you’ve ever seen.

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You can't add Transitions between Cutaways, all you can do is fade them in/out using the Adjust Button.

The way you should create your Project is to import the Audio track, then add the beat Markers, and then add your video clips. You'll then be able to add transitions between them.

Okay thanks! So I'm doing it in the right window, but adding the background is a mistake?
If I only import the audio file and put markers on it, the video clips don't 'snap' to them like the background ones do, which is a pain!

but adding the background is a mistake?

Click to expand...

In my opinion, yes.

I've not used Markers much, but if you place your first video clip and the drag the right hand end of it to the right past your first Marker, and then slowly drag it back, as you go back past the Marker, the Marker will jump to where the start of the next clip will be.