IT WORKS!!! turning off any video channels below the affected clip on the timeline worked for me!!! This basically means I have to change a bit how I edit with two cameras. Now, in order to get smooth video (no flickering) with the Shadow/Highlight effect enabled, I make three video Tracks: camera 1, camera 2 and combined. cut up camera 1 and 2 clips so you have all the pieces you need, then move them all to the "combined" track. then click the eye to hide camera 1 and 2, you can render a small portion with some cuts to make sure it works, but that is the easiest solution i have found. granted this is a bit more chopping up of my video than I wanted, but it does work! btw, I'm using all DSLR video clips. shot in 1920x1080 at 30fps.
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