Hi Jim, it's been a long time.
I'm sorry, but the only feature I know of that can cause something like what you're describing is an older version of Photoshop opening a file with things in it that it doesn't understand from a newer version, at which point it will fall back to the flattened composite if the file has been saved with Max Compatibility - but as far as I know it will put up a dialog tell you that it's about to open the flattened composite in that case.
What exactly is the content that's in the layered templates to begin with? Shapes? Text? What format? Same question re: the files you're finding are opening in ways you didn't expect.
When you "had to rasterize some layers", is there a chance you saved the rasterized files and overwrite the original files you had received?
Perhaps if you included some additional information, ideally with some screen grabs to show exactly what you're seeing, someone here will recognize the issue and be able to provide more specific help.
Good point! Okay here are two screen shots:
The other unusual behavior is that every time I select a layer, an outlined box is displayed around the layer. I have never had that occur either. As you can see the layer palette has a number of layers but what every layer I go to the "rasterize" options are greyed out.
Please don't shrink the screenshots - we can't see what's actually happening because you shrunk the images.
As for an outline around layers: you're either talking about slices, or you have "show transform controls" enabled on the move tool.
I'm still struggling to understand what you mean.
Is it that the layer icons don't look right to you? Because they show checkerboard patterns?
There are settings that you can change in the Layers panel icon appearance. It's possible you (or Photoshop) have changed a setting there.
I'm sorry to keep asking you for more information, but could you describe in a bit more detail what you expect to see, and then we can compare that to what you've uploaded above.
I think the "show transform controls" option was throwing me a curve. I felt that layers were already being rasterized before I had a chance to work with them. I have spent some time with some layered files after changing this and it appears things look very normal now. I also believe I was checking the rasterize drop down menu in the "layers" menu on layers that don't have the option to be rasterized. This compounded my self made confussion.
I appreciate the help and feel quite dumb about the whole thing now!