I have PSE3 and have used psd layered templates several times with no problems. I purchased some Lie Fhung's torn/frayed templates and something strange is going on and I can't figure it out!
I have e-mailed Miss Fhung and she responded right away!
She referred me to a tutorial that was no help, but she does not have PSE3, so I'm coming here for help! When I open the PSD file in PSE3, in the Layers Pallet, there's a folder next to the file name and then a pencil with a line through it at the far right. When I point the mouse to the folder it says "indicates a layer set" -- I cannot double click this to "open" -- hope someone out there can understand my ramblins'!
TIA,
Debby