Les,
I looked your scene over and it works beautifully. However, when I patterned mine after yours, the video might or might not play and keyframes were ignored or misinterpreted. I checked parameters of your video materials and run modes, matched them and got the same inconsistent results. I rebuilt my scene from scratch (using the original video materials) and had the same failures. I started over again...took the video to be repeated, added it to a quad in a new scene, dragged that video to the scene director, with the set beginning at zero instead of the offset to match my cutpoint. Set test alpha keyframes, tested in sequence and it behaved as it should...faded up where I told it and looped ping-pong style. Modified the alpha keyframes to match my cutpoint---it still behaved. Added another quad to the scene, applied my transition video material to it, dragged the transition to the scene director, set alpha keyframes to clean up the head of the video and to clear the last frame---and it worked beautifully!
...and then...went back to find the difference---I had deleted the Animation Controller from the Scene Director in the failed versions!
Thank you for your patience,
James.
#XPression