Ivan, yeah, I should've put some hard returns between the text and the photos for clarity. Lemme try it again. Here's the entire text of my post [with additions between the backets]:
Since ver 7, I've been able to drag a FCP transition (like fade in fade out dissolve) [in fact all the FCP dissolves] onto a clip and it appear on both ends of the clip.
You can drop the effect on just the front, just the back or front and back simultaneously depending on where your mouse cursor is...if you want the effect on both ends of the clip, drag to the center of the clip and the clip "highlights" (dark outline around the entire clip).
If effect is wanted only on front or back, move mouse to front or back [of clip] until highlighted area shows the portion of the clip getting the effect [dissolve].
[Dragging transition to the center of the clip will put transition on in and out of clip. Notice dark outline around the entire clip before you (release the mouse) and drop the dissolve on the clip:]

[Dragging effect to the back of the clip will put dissolve at the back only. Notice dark outline around just the portion of the clip getting the dissolve before you drop (release the mouse) on the clip:]

Hope this is clearer...John