Animation Problem using Sequence Editor

I’m using Blender V.2.36 on Windows XP.
I have selected two avi files that were rendered from Blender (AVI Codec) and placed them on Channel 1 and Channel 2 in the Sequence Editor. By using the “PREVIEW” window and Add Effect I can get Channel 2 to show a combined image of Channel 1 and Channel 2. When I go to the Animate menu (Tab) and select “Do Sequence” and then Animate I always get just one channel. I’ve read tutorials that say the channels overlay one another with the highest number channel being dominant. So I’ve tried rearranging the channels so that the “combined” channel is the highest number. That didn’t work. Any help out there ?
Thanks

please upgrade to v 2.46 and use the auto-blending functions. In 2.46 the channel thing was cleared up so that the highest channel is the one output.

Sorry, I typed in 2.36 but I’m really at 2.46.
I’ll go try the auto blending functions . Thanks PapaSmurf