Help! Problems with Photoshop Elements

[crystal3405@netzero.net]

Hello,
Let me introduce myself. My name is Crystal and I am fairly new at using photoshop elements. I have taken a class at the scrapbooking expo so I do know how to set up my workspace. I created one layout and now my photoshop won't work. I will explain what it is doing. If anyone has any idea what to do to fix it please let me know.

I open photoshop elements and choose that I want to open a blank file. I choose that I want it to be 12x12 and 300 dpi. Then, I open my papers, embillishments and pictures and place them in my photo bin. I am ready to go. When I select on a piece of paper to drag it to my work space it puts a black box around my workspace. As soon as I let go from dragging the paper it makes the paper appear and everything else disappears. You can't layer anything. I had my friend look at it and she came to the conclusion that it has everything to do with that black box. We don't know what is causing it. Any ideas? I am attatching some pictures of what my screen looks like when I am dragging the paper (you will see the black box) and another one of what it looks like once I have let go of the button. The paper appears but everything else disappears.





Thank you,
Crystal