Heat oven to 350 (325 for dark or nonstick pans). Grease bottoms and sides of two 9-inch round cake pans with shortening and lightly flour, or spray with baking spray with flour.
In large bowl, mix cake mix and gelatin. Beat in water, oil and eggs with electric mixer on low speed 30 seconds. Beat on medium speed 2 minutes, scraping bowl occasionally (batter will be lumpy). Pour in pans.
Bake as directed on box for 9-inch round cake pans. Cool 10 minutes. Remove from pans to cooling racks. Cool completely, about 1 hour.
Meanwhile, rinse strawberries and dry on paper towels (berries must be completely dry). Line cookie sheet with waxed paper. In 1-quart saucepan, melt vanilla baking chips and shortening over low heat, stirring frequesntly, Remove from heat.
Dip lower half of each strawberry into vanilla chip mixture; allow excess to drip back into saucepan. Place on waxed paper-lined cookie sheet. Regrigerate until coating is firm, about 30 minutes, or until serving time.
Split each cake horizontally into 2 layers. On serving plate place top of 1 layer, cut side up; spread with 1/3 cup of the jam. Add bottom half of layer, cut side down; spread with 1/3 cup jam. Add top of second layer, cut side up; spread with remaining 1/3 cup jam. Add bottom of remaining layer. Frost side and top of cake with frosting. Arrange dipped strawberries around top of cake. Place 5 strawberries on top of cake. Store in refrigerator.