I personally tend use frame animations rather than video animation when using Photoshop, but I feel like I have more control over the layers. However, there appear to be plenty of tutorials out there including one by Julianne Kost, and they don't come better than that!
There are heaps more to try though. Good luck and Let us know how you get on.
Thanks for the reply, I think I kind of know how to turn images into animation with pan and zoom, my question was more about the issue I experienced where the top layer is automatically getting zoomed in. However, I'll try the frame animation route as you suggested and see if that resolves the issue. I'll let you know how it turns out. Thank you for your help.
What I often do is use Free Transform Step & Repeat to generate the layers, and then use Make frames from layers. You can move, resize and rotate an object with S&R, and it is quick and easy. The problem is that this only gives automatic control of one element in your animation. If you have more than one object, you then have to select each frame one at a time, and turn on the relevant layer for the other objects. Grouping your layer sets is pretty much a must with this, as it can get complicated.
A nice benefit with S&R is that you can do a s perspective effect. I discovered this by accident when we did the first forum banner challenge. Another benefit of using groups is that having made your range of movement etc. with step & repeat, you can move, and even free transform the entire group to place start and finish points where you need them. The Q & A effect below would have been tricky to do any other way.
That's a cool banner. I finally figured out what was happening in my example, I had the "Resize to Canvas" option checked so it was resizing to larger canvas which is larger than the image size itself. Another issue had that I ;m only working with a single image, cutting out portions (e.g. a truck) from the background and panning as compared to series of still images which as you pointed out would be best rendered via frame animation.
I also think that After Effects (AE) probably a better tool for parallax type panning.