Adobe PS7 problem

Hey, I have a small problem with Adobe PS7 and I'm hoping I can get some help to fix it.

When I have a new layer and I have chosen that layer tab and I'm moving the picture on that layer but not click directly on it, just somewhere else on the work area, the layer underneath it (like for example, the background) moves instead.

However, if I put my arrow on the picture on the layer and then move it, then only it works.

I know PS isn't supposed to be like that, any idea how I can get it fixed? Because it gets realy annoying, especially if I'm adding small text and want to move it.

Thanks!