Layers is the real workhorse of Photoshop and can appear very daunting when you first look at them, but it's worth spending a little time to get to grips with the Photoshop layers. You will find that once you do the opportunity to create some great images will open up to you.

Your Layers Palette can be found via Windows>Show Layers (shortcut F7). Click onto the thumbnail in the layers palette and drag it over the Create a New Layer icon to duplicate our original background. You can rename the new layer by right clicking and selecting Layer Properties (see below). Don't worry if you are using Photoshop 5, choose Layer Options and enter a name of your choice.

To copy another image into our working image we first make sure the image we want to copy is live (title bar highlighted in blue) from the main menu choose Select> Select All (short cut Ctrl A) and you will see the marching ants around the edge of your image. You can then copy your selection using Edit >Copy or by pressing the shortcut keys Ctrl+C. This command will copy your image to your clip board. Now select your main image by clicking on it, select Edit > Paste from the menu bar or use the shortcut keys Ctrl+V. Photoshop will paste in your selection as a new layer. (See below)

Your image can also be added as a second layer by dragging it into your main working image. With both images opened on your screen call up the Move Tool from the Tool Box (shortcut V). Click on your 'live' image and drag it across into your main image. You will notice that as you drag it across the Move Tool cursor displays a + symbol indicating that the image is being copied. Photoshop will copy the image as a new layer. (See Above)

Clicking on your Background Copy Layer will highlight it in blue and a paint brush appears in the window showing us that this is the working layer (see above). You can Merge this layer into the Background Layer by clicking on the black arrow head in the top right corner of the palette. From the Drop Down menu select Merge Down. This will leave you with Layer 1 and your Background Layer. (See below)

From the Drop Down menu in the Layers Palette choose Merge Visible which will merge all the visible layers e.g.. All layers with the eye icon showing.