Crossfades and Preferences

ReaEdit puts a crossfade at every join it makes. The crossfade is written directly into the items, with a fixed length you choose, so the same edit always sounds the same.

Preferences

Run Preferences (find it by searching the Action List for ReaEdit). There are three settings ("XFM" is the keyboard crossfade mode):

S-D Crossfade length (ms)
The length of the crossfade at each edit. Default = 35. Longer crossfades are smoother on sustained or reverberant material; shorter ones are better for fast passages. The crossfade mode's Reset action uses it too.
XFM nudge (ms)
How far each step moves in the keyboard crossfade mode: slipping, nudging, shifting, widening, narrowing and changing the fades. Default = 5.
XFM x modifier multiplier
The larger-step version of those keys moves this many times the nudge. Default = 5.

The setting is saved with the project, so different projects can use different values.

When a crossfade is shortened

If there is not enough source material to give a full crossfade at the source IN or OUT, the crossfade at that join is shortened to what is available, and ReaEdit tells you by how much, for example "Crossfade shortened to 12 ms at source-in due to limited source material." The edit is otherwise unaffected. If you want the full length, move the source marker a little further into the take.

Adjusting an edit afterwards

Edits are ordinary REAPER items, so you can still trim, slip or fade them with REAPER's own tools, and undo takes the whole edit back in one step.

To listen closely to a crossfade and fine-tune where it falls, use REAPER's own crossfade editor, described in REAPER's Crossfade Editor.