Trying to crop layer, getting "Can't complete because smart object not editable" message

Using PSE v9 on a Mac
I have a layer with an image that I want to crop around an element on the image. I've selected the area and inversed, then hit delete (why isn't there just a 'Crop' command?) and am getting a message that says:
"Could not complete your request because the smart object is not directly editable."
I'm not clear what a smart object is and whey they're not editable, and how I can make this editable, and how does that change the image.
Thanks
doug

You don't won't to crop the whole photo, just delete the area from the layer
that you've selected?
Two ways:
1. Go to Layer>Simplify Layer before using delete.
2. If you want to keep the smart object, select the area you want to keep, not
   delete, then hit the Add Layer Mask button at the bottom of the layers panel.
A smart object is usefull for resizing an image layer over and over without losing
quality (the image doesn't pixelate like it does on a non smart object)
If your not planning on doing lots of resizing or transforming on the layer, then removing
the smart object by Layer>Simplify Layer won't make much difference.
MTSTUNER

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