1) import or record in your audio on to your tracks screen
2) double-click the track in question, which takes you to your SEQ-1 editor
3) at the top right corner there is a button that says UNITS - please press the button so that it is NOT blue... ( this takes the file off the GRIDLOCK)
4) move your 2 files together until the overlap at your desired point
5) take your mouse and click and drag across the time ruler over the area that you want to be faded
6) either hit the apple key and F or go to the Audio tab and choose FADE
7) the CREATE FADES box comes up
8) make sure that on the far left where it says "create fixed length" to change that selection to "fade selected time range"
9) choose your fade design and hit O.K.