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I believe that you have posted a Photoshop Elements question to the Premiere Elements forum. Premiere Elements is an NLE (Non Linear Editor) program for editing motion footage, and not still images, like Photoshop Elements.
Now, let's see if we can help you. Layers can be thought of as acetate sheets with images on them, stacked up, one atop another. This was how things were done before the digital era, with physical sheets of acetate, each with an image on it. One of the first concepts is that if the upper sheets (Layers) have an opaque image, it will "cover" all below it. To see the lower Layers, one must either have some form of Transparency (Opacity below 100% in Layers), or only a partial image with Transparency around it. Otherwise, one only sees the upper-most Layer.
I have to admit that I am not an expert in Photoshop Elements, but have used Photoshop (the big-brother) for about 20 years, and almost daily. I'll step you through how to do what I think you want, in Photoshop, and it should be very similar in PSElements:
Let's start at the beginning. You have your tow images Open, the man and the beach. You will also want the Layers Palette Open too. You have used the Magic Lasso to outline the man in image A. With that Selection active ("marching ants"), drag to your beach image, image B *. This will bring in your man as a new Layer, above your Background Layer. Since you have effectively eliminated the background in image A, you should see the Background Layer (the beach scene) around the man in Layer 1. Now, with Layer 1 (the man) active in the Layers Palette, hit Ctrl+T (Free Transform) and you should see a Bounding Box, with Handles at all four corners and also in the middle of each side of the Bounding Box. If you wish to Move the man, just click-drag inside the Bounding Box to position Layer 1. If you wish to resize (most likely, you will want to keep the aspect ratio constant), just Shift-drag on one corner of the Bounding Box to resize. You can then reposition (see above), to get the man where you want him, once resized. When you are satisfied, Dbl-click inside the Bounding Box to commit your changes. You can still use the Move Tool on Layer 1 to reposition the resized Layer.
I'm not sure if PSElements has Layer Masks, but I use these to "clean up" the edges of my Selection. I choose Selection>Load Selection>Layer 1 Transparency, and then Selection>Save Selection>Layer Mask>Layer 1. Once this has been done, you can "paint" in, or out on that Layer Mask. Please check to make sure that PSElements has Layer Masks - I am just not sure that it does. The use of these allows for non-destructive editing of Layer 1 and are great devices to clean up around an object.
* One can also Ctrl+C (Copy), and then give focus to image B, and hit Ctrl+V (Paste) to get the man into Layer 1 above the Background Layer.
Hope that this helps, and good luck,
a) Thanks very much ....
b) Sorry -- I know the difference between Photoshop and Premiere... I just spaced out and as you said, posted this question to the wrong forum... early Alzheimers or something ... apologies
b) Sorry -- I know the difference between Photoshop and Premiere... I just spaced out and as you said, posted this question to the wrong forum...
Don't worry about that. It happens all of the time. I have to keep focusing on whether I mean PS, PSE, PrPro or PrE!
Hope that the PS/PSE tips helped you, regardless of the forum. Getting you going with PSE is the important thing here. I just wish that I knew PSE fully, but only have used PS for all of my image work. The programs are similar, though there are differences between how each operates and on what features are available in each - for instances, PS does not have a SlideShow feature, like PSE does.
Good luck, and happy editing,