Transparent areas showing gray

I am trying to make a collage of oval-shaped photos in Photoshop Elements. I cropped my photos to oval shapes using the cookie cutter tool. The areas around the ovals (from where the original picture was rectangular) are transparent. Once I had my four photos cropped, I started a new blank file with a white background. Then I started pulling in my cropped photos to start figuring my layout. When I pull the photos in, the transparent areas are appearing gray. This is preventing me from being able to do the layout I want. How can I keep the transparency when I pull in the photos?
I read another posting discussing a similar problem, and it was suggested to create a frame instead of dragging the photos in. However, I haven't been able to figure out how to do it.
Any suggestions or assistance would be greatly appreciated!!!

Thank you soooo much. That was a great help!!! I hadn't realized I could minimize the view of the project I was working on in the main image window. That's why I was dragging from my project bin. Once I read your response and played with it some more, I realized what I had been missing. Isn't it amazing how missing a simple action can cause so many hours of frustration. :-) Thanks!!!

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>
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