Elements photomerge panorama greyed out

I'm using Win 7, Elements 9 trying to make a panorama.  I click FILE, NEW, but then Photomerge Panorama is greyed out.  How do I make a panorama out of two photos?  I've tried loading the two photos first, but no luck.

Do you have the quick edit open? You cannot use panorama with it open.
Open the full edit and try again., it should work then
Colin

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