VideoStudio 9 is actually designed to be backward compatible with projects made by lower versions like VS8.
Regarding the effects, if you purchased the download version (ESD), then usually only the (bare) program is included with the main download. Other components are downloadable separately to streamline the download process and give users more flexibility with choosing the stuff they need. I'm not sure if the effects should already be outlined in the library even before you download and install it (I'd apreciate anyone who can clarify this matter). But I'd remind you anyway, just to be safe, to make sure you install the additional components first using the "Smart Download" feature.
Then for you to be able to see the "delineations" on where you can add the transitions or effects, you must be in "Storyboard View". It should be the film-like tab icon at the lower left portion of the workspace. You will not see this if you are in the "Timeline View" or the one with the tab icon of an inverted "E".
Anyway, regarding your problem with the older project files, I'd advice you to contact Ulead Tech Support. Go to
http://www.ulead.com/tech/techsupport.htm and submit a "Techincal Support Form". Ulead hasn't released an official patch or update yet for the discovered bugs or problems with version 9 so the Tech Support people should know if there is a specific fix for it, or if it's not a bug... just a problem caused by bad installation, or if you should just wait for the patch to come...
