help

I have PS7 and I was working on a Red Eye icon and some how something surrounded the icon. How do I get it off? I'm new to this program and I was experimenting with the buttons and I must have done something:



Also, I don't know how to change the icons for my images. When I try to open something, I can't tell the difference between a jpeg file and PS7 file. Some how PS7 was set as a default and I don't know who to change it.



Please help, thanks in advance. ♥