http://www2.gol.com/users/spee/Studio/effects.htm
Works fine for me; but here is the text directly from the site.
Picture in Picture (PiP) without using Hollywood FX is very doable. You will need to create two projects: the first project is to create the Picture in Picture clip, the second project is your main project which includes the Picture in Picture clip.
Place both the main clip and the secondary clip on the timeline (not storyboard) and trim them to the required lengths. Select the main clip, open the video toolbox and add a title overlay. In the title editor add a button to the title overlay. I suggest you use the Misc - Thin White Frame button, but many of the other buttons will do to. The button will be your PIP frame; position and size the button accordingly. Exit the title editor and you will notice that the title track now contains a disc menu. Tick off Use moving video for all thumbnail buttons (the filmstrip icon) in the disc menu toolbox. Click Set chapter link for selected button to set the start of your PIP clip. When you render this project to an AVI file, it will both include the main clip with the PIP effect and the secondary clip.
You are now ready to include the AVI into your main project. Trim the end of the AVI file to get rid off the secondary clip; this is the first reason to render your PIP effect seperately from the main project. The second reason is that if you output your project as a VCD/DVD, the menu will be treated for what it is; a menu and not a video clip with Picture in Picture.