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Is it possible on a workflow transition to have an issue created in another project? If so can certain fields be carried over to this new issue and can it be placed in a certain status? Please note that the screens in the two projects will be similar so we would like to parse information over and the same fields will be available in both projects.
Also, if you can create an issue, is there a post function to link the two issues together?
You'll need to do some coding (probably scripting, if you can't find a pre-made add-on) to do that. There's nothing for creating other issues built into JIRA.
If you do decide to script it, then it's not that hard - I'd start with a post-function that does the basic "create issue in other project" with a simple summary filled in, and then the rest will be pretty straightforward. You'll have all the current issue data available in the post-function for current issue, so you can create the link and copy whatever fields you want to the new one.