In action domains where agents may have erroneous beliefs, reasoning about the effects of actions involves reasoning about belief change. In this paper, we use a transition system approach to reason about the evolution of an agents beliefs as actions are executed. Some actions cause an agent to perform belief revision while others cause an agent to perform belief update, but the interaction between revision and update can be non-elementary. We present a set of rationality properties describing the interaction between revision and update, and we introduce a new class of belief change operators for reasoning about alternating sequences of revisions and updates. Our belief change operators can be characterized in terms of a natural shifting operation on total pre-orderings over interpretations. We compare our approach with related work on iterated belief change due to action, and we conclude with some directions for future research.