Ps not working: Basic File- New does not provide area to work in

I installed PS CC ... started it up... tried File->New and no layer shows up... it shows up on right side.

System is Firefox, Win 7 (SP1)  running on i7 @ 2.20 GHz.   Laptop - 8GB 64-bit OS
Not sure about document setting?  [I am new to Photoshop... I did not do change any settings just started it up... I was just following the beginner's tutorial for creating a college, I didn't do any changes to any settings... after installation.
This morning after several hours .... the Ps "work space" showed the 2 layers - Background and photo (that I dragged and dropped)....
So it seems that performance is UNBELIEVABLELY SLOW...
I tried to resize the photo but nothing happens on the work space.... the right side bar shows photo in lower right quadrant ... but actual photo is taking most of the background (before I resized)...
Any tips on speeding up performance?

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