sequencer: transitions not visible

I added a movie and still with a cross effect and an audio file in sequencer. The effect is only visible when I move my mouse over the cross over bar but not in preview mode. When I animate it (Do sequence ticked) it won’t show the cross over effect. It also doesn’t record the sound bar in the sequencer. It just saves the original movie. Can somebody help me out here?

Did you remember to press “Do Sequence” below the anim button?

yes do sequence is on.
I have the transition going. By accident I zoomed in there was a file all the way at the top causing the problem. The audio is still not working. Is it possible it doesn’t take wma audio extention. Or maybe the codec doesn’t take audio?
Other question, I like to combine with Meta, however I often get an error message saying “please select all related strips”. Do you know what that means? Meta can’t combine a still+affect+movie?
Sorry I am a newby, browsed through heaps of tutorials but can’s seem to find the answers.