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I was stumped over this same problem during my first experience with Vegas Pro. It doesn’t work quite the same as most consumer video editing programs. The topmost order of video tracks matches the display order of clips that overlap. Place the corner-specific (PiP) video track above the background video, and then click a small blue-white box with an arrow on the track’s set of controls. Here you should be able to adjust size, location, and 3D positioning.