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I figured it out today! I use PSE5 normally but when Sarah asked about this I downloaded 6 to see what the heck was up. When I tried to drag and drop into the template it made whatever I was dragging into a frame layer instead of a regular layer. If I clicked on my photo in the bin and then did select all and then copy and then Pasted it into the template it would let me do ctrl + g
there has got to be a simplier way!! but I did get that way to work!
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