What program, OS, and file type?  Many tools only work in RGB 8 bit.

On a Mac start PS and immediatley hold down cmd option shift keys.  If fast enough you will get a reset window.

Now it's clear what you're doing, I can say that it was something that was specifically changed between Photoshop CS3 and CS4 if I remember correctly.  In Photoshop CS3 one used to be able to select all, then contract the selection, and that made perfect sense to me.

I even asked Chris Cox about it once here on the forum, and he implied he had fixed it in Photoshop CS3 but the change was reverted on purpose in CS4.

Personally I find it to work wrong now, but have learned not to expect it to work.  apparently inertia is more important than sensible operation to Adobe's decision makers.

-Noel

You're saying that with Photoshop CS4 you have been able to Select - All, then the Select - Modify - Contract and the others were available?  I've not seen that.

Keep in mind those menu entries ARE available and work if you have anything but the entire image selected.

-Noel

So I'm afraid I still have major confusion. I have the same exact problem that you have, except that I'm not doing anything different this time than I always have.

10.6.8, CS4, 8-bit RGB

I'm creating a frame for the underlying image. I create a new layer, Select All, Select -> Modify -> Contract. No different than every other time in the last 30 minutes. I'm creating several sizes of image and want to create identical frames for them.

Out of the blue the Modify options are all grayed out, except "Border" which isn't what I want, and I don't know what that does anyway.

Can someone shed light?

It's expected behavior that if the selection goes all the way to all the edges of the visible canvas, fully selecting all pixels, you will not be able to Contract the selection, since it does not contract away from the edge.  If somehow even one pixel of the selection did not go to the very edge, or was not fully selected, then you can Contract the selection.  It's really as simple as that. 

Not that I agree that this behavior is the most useful possible implementation.  It was right in Photoshop CS3, I believe.

Mirlac, I'm guessing you had a non-zero Feather option set.  With that setting, selecting around the entire canvas with e.g., the Rectangular Marquee Selection Tool would allow you to Contract, as all pixels are not fully selected all the way to the edges of the document.

-Noel