How To Do Video Effects

Video Effects are Filters that are applied to Movie's Selected Sequences or Incrustation Effects. Go thru the steps of selecting a sequence in the Movie (As explained at the end of the Introduction Chapter), select an Effect and press the "Apply Effect on Movie" button. The Incrustation and Cross-Fade Effects need both a Clip and a Movie to be opened.

Let's cover the Effects one by one:
(The Effects marked in RED require both a Clip and a Movie to be opened, and a Start Point to be set in the Clip.)

Black and White: This Filter turns a color sequence into a grayscale one.
Brightness & Contrast: This Filter lightens or darkens the Selected Sequence.
Change Time Scale: This Effect changes the playback rate of a sequence within the Movie.
Chroma-Key: This filters enables you to incrust a part of the Movie in a Clip. What you have to do is select a color (the Chromakey color) in the Movie which will be replaced with the corresponding contents of the Clip. There's two way to choose the Chromakey color. Either use the 'Set Color' button or click and hold the mouse button on the Video Effect screen until the eye dropper appears, you can then directly select the color on the screen.
If you want to extend the effect to colors that are close to but not identical to the Chromakey Color, use the Color Tolerance slider.
Color Balance: This Filter enables you to modify the RGB component of the Sequence.
Color Replace: This Filter is similar to the Chroma-Key Effect except that the Target Color (the Chromakey color) will be replaced by the Replace Color.
Crop: With this Effect you can zoom into an intersting spot in the Movie.
Cross Fade: This Filter fades a Clip Sequence into the Selected Sequence. Play with the slide bar for interesting effects.
Dynamic Crop: Produces a zoom that changes over time.
Dynamic Incrustation: This Effect is similar to the latter but by setting different beginning and End Incrustation Window you can make the Incrustation move and/or grow over time.
Emboss: This is an Emboss Filter for your Sequences.Go Backwards: Applying this effect to a sequence will produce the same effect as playing it bacwards. 
Fade In & Fade Out: Fades the sequence into or from a color of your choice.
Incrustation: This Effect allows you to incrust a Clip Sequence in the Movie. In addition to the Movie's Selected Sequence you must set a Start Point in the Clip. You can move the Incrustation Window by dragging it and resize it with the Slide Bar.
Inverse Color: Inverses the colors of the Selected Sequence.
Mosaic: Set the amount of pixelation with the slide bar.
Replicate: You can set different degrees of replication at the Beginnning and End.
Saturation: You can change the Color Saturation of the Sequence.
Stroboscope: This Filters drops frames at a rate you specify, producing a Stroboscope-like effect.
Tint: Tints the sequence with the color of your choice.