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Inserting a small clip within a movie in Premier?

Hello all,
I am a bit of a novice at Adobe Premier.  I am trying to create a movie in which I would like to place a small movie clip that would play as an "insert" over a larger movie background.  I created a clip that is 180 x 135 pixels big.  I then placed the larger background movie clip in the Video 1A track.  I then placed the smaller 180 x 135 clip in the Video 2 track.  But, it automatically gets resized to the overall movie size.  In other words, it covers the entire Video 1A clip.  Instead, I would like to place the smaller clip as a smaller movie playing over just a portion of the background movie.  I am sure there must be a simple way of doing this, but I am lost.  

I hope this explanation is clear.  Anybody have any idea how I do this?
Thanks in advance,
Stephen Pintauro
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Thanks 3DMAX......that did it.