Adobe Premiere CS4 - Image overlapping

Hi guys, I'm editing a video and I want to add an effect.

I have this video that is a mix of images. From an image to another, there is a transition.
Part of the second image, is overlapped on the previous one.
Here is an example: http://www.youtube.com/watch?v=FLGLSgS4Rio&fmt=18

How can I do that with Adobe Premiere CS3 or 4?

Thank you in advance, Paolo.

Sigh .... Nothing says "warez" more than having a $1,000 piece of software and not knowing how to do the most basic things with it. I guess you're at least stealing the best software for the job, instead of some crappy all-in-one $30 jobber app.

... Unless you're a student on a school machine, in which case you can disregard the previous statements, please learn away. Premiere is a great app, and looks harder than it really is, at first glance.

Anyway, read this: http://www.digitalfaq.com/guides/video/edit-premiere-basics.htm
You want a CROSS DISSOLVE. It might be a tad different location in each Premiere version, but it's there.

Please don't tell me about warez and so on, because I never ask anything about it. I don't have to excuse for which software I use and where I do.

Thank you for your help.