You can't drag the anchor point into position. But for many effects, you can set the anchor point in the Properties panel.
What exactly are you trying to do?
I want to do PiP with the upper photo coming out of a portion of the lower photo.
Upper photo then expands to fill the screen to a point where a back ground appears to create a back drop, obscures the lower photo, making the upper photo prominent.
I don't think you need to change the anchor point to do that. You can just resize the upper photo by dragging on its corner handles and you can reposition it by clicking and dragging on it in the Monitor panel.
Add a few motion keyframes and you've got your very cool effect!
I am used to Premiere Pro 5.5 that has the capability.
I have 40 some odd photos to do this with. I tried to automate the process by creating a preset. With premiere elements it seems to take longer. I guess I just have to fool around with what's available.
I am using premiere elements 10 upgraded from premiere elements 9, which had the color matte function which I can't find it elements 10. Can you tell me where that function my lay?