I can't edit any photos. Try to crop but just moves the whole picture?

I can't edit photos. I select the crop tool but the mouse pointer just drags the whole image rather than create a box for the crop area? Even the in built photos/projects can't be edited. Nothing seems to work. I select the folder in the projects inspector but the folder contents don't apear in the browser, although individual images appear in the main window, eventually. Begining to think the software is dud or not compatible with the my mac operating system? I've tried re-installing the software.

Have you tried the Troubleshooting Basics found here: http://support.apple.com/kb/HT3805

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