LAYERS
Source: http://www.adobe.com/education/digkids/lessons/layers.html
Overview:
The power and flexibility of Photoshop lies in its layers. Before you get started using Elements in integrated projects, you need to learn how to use the Layer Palette and the Layer tools. This lesson will offer a step-by-step project that will have you mastering the art of layers in a very short time.
Open Photoshop Elements > Edit and Enhance Photos > File Menu > New > Blank File > Set the following:
Name: Untitled-1
Preset: Custom
Width: 7 inches
Height: 7 inches
Resolution: 72 pixels/inch
Colour Mode: RGB Color
Background Contents:
White
If your Layers Palette is not open in
the Palette Well on the right go into the Window Menu >Layers.
Notice the layers palette always starts with a
layer called background.

Save the file as Layers. Save often
as your work.
Create a new layer.
It is a good
idea to keep your background layer blank. That way, any layer you create
can be edited or deleted easily. There are several ways to create a new
layer. One way is to click on Layer Menu >New > Layer. Another way is to
click on the "Create a New Layer" Button on the layers palette
on the right.
Rename your new layer,
calling the layer, Back. To do so right-click on the
layer > Rename (or double click on the layer).
Setting your background colour.
If your Colour Swatches palette is not open in the Palette Well on the right, go into the Window Menu > Colour Swatches.
Select a light blue colour from the Colour Swatches Palette.
Look at the bottom of the Toolbar on the left side and you'll notice
that the colour will appear as your foreground color as illustrated
here-->

To set the blue as your background,
click Edit > Fill Layer > Foreground color > OK
Using one of the methods
mentioned earlier, add another layer and call the layer Square.

Be sure the Square layer is selected > select the rectangular marquee tool
> draw a square on the canvas.

To colour the square green--> Select green from your Swatches
Palette > Edit Menu > Fill Selection > OK.
Deselect your square selection.
To do so press Ctrl D for Deselect, or Select Menu > Deselect.
Add a new layer and call it
Circle.
Use Elliptical Marquee tool then hold down the
shift key while you draw your circle to keep it a perfect circle, rather
than an ellipse/oval.

Colour the circle in the same way as we did the square -- Select a new
color on your color swatch > Edit Menu > Fill Selection > OK > Ctrl D to
Deselect the circle.
Make a new layer and call it
Triangle. To draw a triangle, select the polygonal lasso tool
(see below) To select it, click and hold for a couple of seconds and the
flyout will show the choices > click where you want the triangle to
start > move your mouse (not click and drag) > click again > when done,
double-click to finish.

Fill the triangle with a new color. Remember how? Select a colour
> Edit Menu > Fill Selection > OK.
Make one more new layer and call it
Thing. Use the Lasso Tool then click and drag to draw the shape
(see below). Select a new
color and fill in your thing.

Now there are 6 separate layers, each with one
item. Because they are on separate layers, they can be changed and
manipulated, turned off and on, moved up or down in order or even
deleted completely.
Click and drag the Thing layer so it is below the circle layer.
Notice that you now see the thing shape below the
triangle and circle shapes on the canvas (but above the square) just how
it is represented on the Layers Palette.

Practice dragging the layers
to change their order.
Not only can items be moved in relation to each other on the canvas, but they may also be
made larger, smaller or can be tilted. First be sure that the correct
layer is selected/active (it'll be blue) then simply click on the move tool to
access the editing handles. To exit the “handles” select a new tool from
the toolbar.

If you wish to work on one layer at a
time without seeing the other layers, you can turn off any layer by
clicking on the illustrated eye to the left of the layers. Turn them
back on by clicking them again.

If you are sure you want to remove or delete a layer, right click the
layer and click Delete Layer or drag it into the Trash (the button above
the top layer).

Save your file.
Add another layer and call it
Title. Click on the Text tool and add a title in a font, size and
colour that looks interesting.
Adding Layer Styles
If the Artwork and Effects Palette is not open in the Palette Well on the right, go into the Window Menu > Artwork and Effects.
Click on the 3rd button under the Palette Title Bar (Apply Effects, Filters and Layer Styles). From the drop-down Menu under "Special Effects" choose Layer Styles and from the drop-down menu beside it choose Inner Glows.
Double-click on a style you like.
Explore other effects and apply a few to
each of your shapes. Remember you need to choose each layer separately,
eg. if you want to apply styles to your circle, your circle
layer must be active/selected/blue.

Save your finished product.

**This lesson was created by
educator and Adobe Master Teacher
Sara Martin.