Imported jpegs/pngs won't save as smart objects
I think I'm a bit confused on the right way to work with external bitmap files.
Usually I just drag them into my PSD and photoshop appears to automatically create a smart object.
However, if I want to edit the bitmap, ie, do some cloning or such like but still retain it's smart object features it seems this is not the best way. When I click into the bitmap to edit it and add a layer or so, when I save I'm told I need to flatten all the layers which is not what i WANT.
So what is the best way to put jpegs and pngs into my photoshop file? or am I missing something
