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Wy does my 'Picture in Picture' disappear?

Hi Guys, i'm trying to do picture in picture with an image i've created in CS6. I've watched lots of you tube tutorials on this and it seemed so easy BUT....

I drop my picture onto the video, go to picture in picture, and it appears in the preview box just where it should. When I scrub through the video it pops up and pops off just where it should. However when I PLAY the video and it gets to the 'Pic in Pic' start, the video goes still, the embedded imgage is not there, and the video remains still until the point ewhere the embedded image stops. Whereupon the video comes to life again. It's got me beat, been trying for hours.