Hi! I have a quick question...

I used to have Photoshop Elements, but recently got Photoshop 7, (woo!). In Elements, I could select the area of a picture I wanted to paste another image into, and then click 'paste into'. I would be able to move the image, (inside the first image), around and tweak with it. Now, however, when I click 'paste into', (after selecting the 'paste into' area), it's just regularily pasting it. I can't move the image, I can't do anything. Does anyone know how to fix this, or of another way to do what I want to do?

Sorry for sounding so confusing! Lol.