Anybody on this ...
When I use the free transform tool crtr-T and use the ctrl drag button, the corners do not extend properly. It extends universally as aposed to a distorted corner-pull. I uninstalled CS6 and reinstalled still getting the same result. Any help would be greatly appreciated...
I seem to be able to transform Smart objects layers, Raster layers and Vector Shape layers witout problem using the Ctrl key and distort the rectangle area dragging a corner. Your's seems to be acting like the shift key is being held down. Try resetting your Photoshop's tools and if that does not fix the problem try resetting your Photoshop Preferences. Also make sure a shift key is not stuck. Unless you use the remove preference option during an un-install user preferences remain on userid that have used Photoshop.
Sounds like you are transforming a Vector Smart Object. VSOs can be scaled, rotated and skewed, but not distorted, perspective distorted or warped. If it is a VSO then right-click its name in Layers panel and pick Convert to Smart Object. That will encapsulate the VSO in a regular SO which can be distorted.
What conroy wrote convert a smart object layer to a smart object layer may seem a bit strange but he is correct. All smart object layers are not created equal they may contain many types of smart objects. An illustrator vector file placed in can most likely be reopened in illustrator by double clicking on the layers smart icon in the layers palette and transform the vector object in illustrator and when saved in illustrator the embedded smart object will be updated to reflect the changes made in illustrator. If you encapsulate a VSO into a Smart Object when you transform the resulting smart object layer it will be transformed like a raster layer using interpolation like all Smart Object layers are transformed. If you want to transform a layer that contain vector graphics using vector graphics you need to correct tools. Transform I would think would only transform Vector Shape Layer using vectors and change Text layer by changing font size all other layer types would be interpolated. An embedded smart object the contains many Photoshop layers some which are text and vector layers like a places PSD file may be transform better using Photoshop Image Size and then transforming the resulting updated smart object layer if your increasing the layers size.
Text Layers can be transformed however Transform Distort and Transform Perspective is not allowed and are grayed out. With CS6 a Text layer can be converted into shape layer right click on the text layer in the layers palette and click convert to shape. Once converted to a shape the Shape path can be transformed and Distort and Perspective is allowed. The transform will be a vector transform not a interpolation like transforming a smart object layer. See screen captures.