PSE 7 Photomerge

I am using PSE 7 and trying to use the interactive layout.  After the files are selected I see the merging of files on the screen but the final file never appears.  Does anyone know what I might be doing wrong?

Interactive layout is used when you want to align the photos yourself. Initially PSE7 tries to align the photos and then a new window is open in which you can move the photos. Incase PSE is not able to align the photos by itself it gives you a msg and then opens the new window in which you need to drag the photos to the workspace from the top and then manually align them.
I hope it helps.
Thanks
Siddharth

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