Photo within a photo

Hi all,
I'm new to the forum as well to Photoshop itself, so please pardon the newbee questions.
In putting together art work for CDs and DVDs, I would like to put a small photo within a larger one. I assume you would overlap layers (?) But when I open a new photo (the smaller one) it has its own set of layers.
How do I set a photo within another?
To clarify, I'm using Photoshop Elements 3.
Thanks,
--Barry

Barry
Working with layers is confusing for many new users so don't feel too frustrated.
Method 1
Open Image 1.
Open Image 2.
Click Windows>Images>Tile.
You can now drag your second photo into the first photo. It should create its own layer that you can move/resize with the Move Tool.
Method 2
Open the image you want to move.
Select All Edit Copy.
Close this image.
Open the image you want to hold both images.
Edit Paste.
It should create its own layer that you can move/resize with the Move Tool.
The only difference is how many windows you have open at one time. I prefer working with only one open window, but that is strictly personal preference.

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