Unfortunately, the only way to add transitions is by using the button. You can't use the Drag and Drop function. Also, the application supports only AVI, MPG, WMV, ASF, DVR-MS, WAV, MP3 and WMA video and audio formats. In this case, I suggest you convert your MP4 video using a utility from software Informer database. Many of them are free of charge and easy to install and use. In order to create your DVD, press the F1 key and follow the instructions from the user guide.