After an hour of frustration I'm turing to this group feeling totally inept. I'm trying to insert a transparent image into an existing photo using Photoshop Elements. I have an original photo I am trying to use as a background (I have tried using this photo in a jpg and a psd format). I have a second photo I have cut a logo out of and saved to a file with a transparent background (have tried psd, gif, and png formats). The new logo file has a the checkered background and seems to be transparent. I open the photo I want to be the background and drag the logo on top of it. A new layer is created but the transparent logo is surrounded by a gray box. I cannot see the background image through the areas that should be transparent. In other words, all the areas of the logo image that has a checkered background turns gray when I copy it on top of the background photo. What am I doing wrong? Thanks for your help.
You need both photos to be in "RGB Color" mode.
Open your logo, use Image...Mode to set it to "RGB Color", and save it with the transparent background as a PNG file.
Open your background image and use Image...Mode to set it to "RGB Color". Then you can copy and paste your logo image with the transparency intact.
Thank you. The responses from photodrawken and Barbara helped. I can now
copy and paste the transparent image into my backgound. Now, is there any
way I change the size of the transparent image once I drop it into the