It's true, if the tracks are selected and you hit "ctrl-d" then it will apply a "cross fade" between the two. If you're having trouble with those steps then look in the "effects" panel and in there is a folder called "Video Transitions". In there is one labeled "dissolve" and in there is "cross dissolve". Which you can then just drag onto the seam where the two clips are against each other. Make sure they are both on the same track of course (in case that wasn't obvious) and you should be good.