Just use the pointer tool to move the image where you want it.
This doesn't work.
The content underneath is sliced that is the reason for the "overlapping" issues.As i said before that big image should be on top of the layout
on top of everything else.
Change the position of the layers.
Windows > Layers (Or hit F2)
Changed the position.
Now the big image is on top of the layer hierarchy.
Still overlapping issues with my menubar etc. and fireworks switches to absolute positioning.
In the Options dialog my layout is set to be in the center.
After the switch the layout is on the left which i don't want.
Are you sure you are talking about Fireworks? Fireworks does not "position" images. You can lay things out any way you like at any time. Nothing is ever fixed. It would help if we could see what you are talking about. Can you post a screen grab?