Lorace,
If your layers palette shows a single layer, named Background, that is the
reason you are having "trouble"...
I say "trouble", because it's normal, and easy to deal with, and you'll
never think of it again.
Elements treats the Background layer differently than other layers, so has
it partially locked, so you can't do certain things to it. You can convert
the background to a regular layer, or simply make a copy of it (my personal
recommendation).
To convert the background to an editable layer, simply double-click its icon
in the layers palette.
I would suggest, though, that you duplicate the layer by dragging it's icon
to the new layer icon in the layers palette (looks like a page with a corner
turned)... you could also use the menu Layer->Duplicate Layer.
If none of this works, then I've mis-guessed your problem... sorry for
that.
Hope it helps, though.
Byron
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