Photoshop Elements 7 difficulty with photo layers

I'm beyond frustrated and hoping that I can explain this clearly. I just purchased/upgraded Photoshop Elements 7. I am using an HP. Everytime that I drag a photo onto a blank canvas, I am unable to resize the photo on the layer without distorting it. I did not have this problem the first time I used the program but have since. I have reset all of the tools without success. I also previously had been able to replace the photo on my projects by dragging a new photo over top of the one that I want to replace, but now I cannot do this either. Any suggestions?

Hi out there I need some help (BIG TIME)I am new to all this can someone please tell me what Photoshop program can I use to cut the head off of one Photo an put it on another Photo with out spending an arm or a leg for the program I have tried calling Adobe Photoshop
but everyone I talked to just told me to hold for the next guy that went on for over a hour then I gave up I went to all the computer stores buy me and everyone said they didn't know or I had to buy Adobe Photoshop CS3 price $1,600.00 dollars I don't mine spending 1 or 2 hundred dollars for a program but that's it so if anyone out there can tell me how to do this an what program to use you can e-mail me at [email protected] thanks James

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Good day!
Please post Photoshop Elements related queries over at
http://forums.adobe.com/community/photoshop_elements
and please read this (in particular the section titled "Supply pertinent information for quicker answers"):
http://blogs.adobe.com/crawlspace/2012/07/photoshop-basic-troubleshooting-steps-to-fix-mos t-issues.html
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Insanity is hereditary, you get it from your children
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Tips, Tricks, and less known features in Revel (iOS)
VIEWING FILES:
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EDITING FILES:
After making edits on a photo,
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This question was posted in response to the following article: http://helpx.adobe.com/photoshop-elements/getting-started/create-albums-album-categories.h tml

I always learn so much by everyone's postings and your response. Thanks much!
Date: Fri, 17 May 2013 08:23:30 -0700
From: [email protected]
To: [email protected]
Subject: Photoshop Elements Help | Organize your photos in albums and album categories
    Re: Photoshop Elements Help | Organize your photos in albums and album categories
    created by dj_paige in Photoshop Elements - View the full discussion
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Can I delete the old Canon programs, which are still sitting on my Mac?
Yes
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