Hi ljsilver
Thanks for you post. The crossfade area is just lowering the video brightness of one segment, while increasing the video brightness of the another segment.
You can experiment with different fade types to get the fade that you want. Click on the wiki link for more information, there is a video included.
http://www.trakax.com/software/wiki/Category:Crossfading_Media::Changing_the_Crossfade_Type_between_Crossfaded_Media/
You can also reduce the size of the fade by using the adjust length indicators to reduce the size of the crossfade area.
http://www.trakax.com/software/wiki/Category:Crossfading_Media::Adjusting_the_Length_of_a_Crossfade_Box/
You can also place a transition on to crossfade area as well.
http://www.trakax.com/software/wiki/Category:Crossfading_Media::Inserting_a_Video_Transition_on_Crossfaded_Area/
We also have lots of video tutorials available at the following link:
http://www.trakax.com/software/support/create_a_quick_mix/
I hope this helps and if you have any more questions, please do not hesitate to contact me.
Best regards,
Cormac