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Usually the dissolve is used to show a connection between two locations, Ben Harrex demonstrates how the dissolve can be used as an effect.
(Part 3 of 7)
Playlist link - http://www.youtube.com/playlist?list=PLEF579F2F70FEF3F1
Transcript link - http://media-podcast.open.ac.uk/feeds/t215-the-final-cut/transcript/t215finalcut03.pdf
For more information about Dissolving transitions visit http://www3.open.ac.uk/study/undergraduate/course/t215.htm