I can't drag a png file onto a psd file in PSE 10 editor

After using PSE 3 for years, I have recently installed PSE 10 and have begun using it primarily for making digital scrapbooks.  With PSE 10, for some reason I cannot drag a png file onto a psd file.  I probably have missed some setting somewhere but can't figure it out.  Help, please!

It is transparent.  However, it seems the problem is fixed.  I am able to
drag the top layer of the psd file onto the png file instead of the opposite
which is what I was trying to do.  The top layer of the psd file was
originally a jpg photo so maybe that has something to do with it.  In my
previous version of PSE I worked with PNG and PSD files all the time and
don't remember having this problem.  Thanks so much for all of your prompt
replies.

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