I used to be able to drag and drop from one image to another and then resize the image I dragged with the corner drag of the mouse. It used to work on the text as well. When I clicked on the layer, I could stretch the text. I can't do it any more! What did I do to change it, and how can I fix it?

Have you rasterized your type ?

If I did, I don't know  how I did it! lol. I am really a doof at this. Just learning.

First off...what ver. PS® are you using..ver. 6,7,CS 1,2,3 ? This is important info for solving your problem.. ...

 i am using 7

OK...when you add type in PS7 it's vector type so to enlarge it go to, Edit>Transform>Scale and a bounding box will appear around your type. When you've got it to the size you want hit Enter. As long as it stays in this vector format you can resize with zero distortion/artifating, but to work with filters or any of PS7's cool tools you have to Rasterize the type. Do this by going, Layer>Rasterize>Type..
Hope this helps.. ...

In full blown Photoshop you do as Bobbystahr says - you can also hit Ctrl+T to just bring up the Free Transform ability to resize. You shouldn't be able to just grab a corner, drag and it resizes - it's a command function.

In elements you can grab a corner at any time and drag to resize (very annoying - this should be a command function as you could do it accidentally all the time!).

hope this helps-
-Lew ;-)

@ Lucie...but if you "If you select the move tool and check "show bounding box" the bounding box will appear every time", it does limit you to those 3 of the many tools available...even after Rasterizing the layer, at least in PS7 which is what avalonfaayre said she uses.. ...

Hey Bobby,

For me your posts are all coming out in miniscule type - almost impossible to read. I guess I could enlarge the text size in Firefox, but then everything else is so big it has only two words per line! Could you look at the text size you're using?

Yes Bobby, you're right, but she's just talking about strectching or resizing which she says she used to be able to do before (without needing to go to "Edit/transform" it seems) so I'm sort of wild guessing that maybe she used to have that "show bounding box" checked and she unchecked it without noticing...

Yes Lucy, you were right on target. I didn't know what I did to change things but that was it. Now, thanks to Bobby, I have another option that broadens my spectrum enormously. Thank you all for your help!

No problem, in fact my pleasure avalonfaayre.. ...