premier elements and photostory

hello all.. this forum really helped me out with my premier elements program and converting files so i hope someone could help me out with a few questions i have.

i am currently half an hour into my project. i am adding the cross disolve transition to my project (which i have used for the whole thing) and it is not 'cross disolving' when i play it back? does anyone have an explanation for this? how can i continue to use this transition?

My second question is about the program photostory (free download http://www.microsoft.com/windowsxp/using/digitalphotography/photostory/default.mspx). i have used this before and thought it would be really good to use a photostory and the end of the dvd i am creating. am i able to insert a photostory at the end of the project i am creating? or i am able to copy it to the same disk as my premier elements project?

thank you to anyone who is able to help

while waiting for a reply i have worked how to insert a photostory project into a premier elements project.
it would still be really good if someone was able to help me out with my first dilemma
thanks