This seems like a silly question but I've never had this problem in Final Cut. I've noticed that when I do a split edit I'm unable to drop pictures on top of the split. Vegas instead thinks it's a transition and anything after the split it turns into a dissolve. I've turned off the auto-crossfade and it still does this. What exactly am I doing wrong?

I'm not sure what the problem is, but one thing that you can try is to right click on the video track list (to the left, where the track number, slider for adjusting level and other controls reside) and click "insert video track". A new track will appear above the original. Move your insert to the new track right above the split. The insert will cover the split at that point on the timeline. You can apply transitions (fade offset) to the front and back of the insert. And you can change the fade to a different transition if needed by right clicking. You can apply more inserts to the new track and they will cover whatever is on the original at that point on the timeline. The original track with the split should remain unaffected.

While this method doesn't solve your problem, I find it easier in Vegas to use multiple tracks, audio and video, than inserting on the same track.

any number of things could be happening but I agree with Jim about keeping my media seperated on different tracks. I may need to do certain things to stills while perhap different things to th evideo footage. Also when you split the footage to place other goodies in it's place, since you aren't using that part of the footage is there a reason you are keeping it on the timeline? why not split the footage at the 2 place you need to place the new stuff and just delete it off the timeline? It's non destructive so you really don't lose it.
Just a thought.

Don

The main track was 20 minutes and I was splitting the footage and cutting those portions to tighten it up. It was then I noticed that images could not be directly inserted where the actual split had been cut. I could put them on eithe side but not one image overlapping the center.

I tried putting the pictures on a separate track however then I had the problem of the second video layer showing up where the picture borders didn't cover rather than black.

I tried putting the pictures on a separate track however then I had the problem of the second video layer showing up where the picture borders didn't cover rather than black.

Do you mean the black outline around the still(s)?
Open up Pan/Crop on the still, right-click and select "Match Output Aspect".
That'll get rid of it.