Originally posted by: sfgtwsac
Try opening the jpg or gif in a seperate window from the psd file. Then in the psd file create a new layer. Go back to the jpg or gif file and drag the image layer onto the new layer you created in the psd file. You can then tinker with the jpg or gif within the psd file. I didn't have Photoshop Elements in front of me when I wrote this, but I think that's how I've done it before.
Originally posted by: sfgtwsac
I'm not actually talking about dragging the image. What I meant to say was drag the layer icon for the gif or jpeg image onto the layers list for the psd file. In other words, open both the layers control box for each image and drag from one to the other.
Originally posted by: sfgtwsac
I finally got in front of the program and tested this process. Here's how I combined a jpg with a psd. I opened the psd and the jpg files. With the jpg as the active document, I opened the layers toolbox. It logically showed a single layer. I then dragged and dropped the jpg layer on top of the open psd image. This automatically created a new layer in the psd file that contained the jpg image. Good luck!
Originally posted by: YBS1
Under the image mode setting you need to convert the .gif to RGB color first.