Simple question - layers

Derek, a few thoughts:

Did you 'import' the images into Elements or did you 'open' them? I'm
guessing it's the latter. In any case, each picture you open will be a
standalone image - which you can then bring together into a single image.
To combine the two images into a 'layer cake' in a single image:

1. Open both images on the desktop - put them side-by-side if possible for
ease of performing the next step.
2. Find the Move tool in the Toolbox (4-pointed arrow); with the tool
selected, click on one of the two images, hold down the mouse button, and
drag from the first image into the second image, then release the mouse button.
3. Check the layers palette, which you can find in the Palette well or by
doing a Window<Layers (click on Layers). You should see your two images
stacked as separate layers in the Palette.

Note that you'll only see the top layer in the main view of the image;
that's because the other layer is covered by the top layer. That's your
starting point - now you can decide how you want the two layers to interact.

Hope that helps.

Chuck