Ack, All of the Confusion!

I use Adobe Photoshop Elements 3.0 and I did something really stupid to my settings recently.
I was making an icon and sometimes I work so fast I'm not really aware what I am doing.
Some how I got some of my control settings missed up. I've done this a couple of times and have been able to fix it, but this time I'm having a hard time with it. For example. When I try to get a texture and pick it up, it reads; 'Warning; No pixels are more then 50% selected. The selection edges will not be visible'.

When I go to my squared boxed thing to pick stuff up. I can only do it when it's rounded.

All of my icons and textures by others are 100X100 by the way.

And when I use my textures, I can't even see them! They just don't show up and there very blah. I don't know why I can get this fixed. I know there's a way but I can't figure it out. I went into memories and found one guide. It helped me a little bit but my things are still a little bit mucked up though.

It's just really weird because I just made a new batch of icon. Have them posted up fine and they look great. For some reason though it's just weird now. If any one could show me a tutorial on this or something. That would be great.