Ok, when I did drag and drop the "BW tone Modifier" element (did not include the "Black Forground element(think that is right) to the picture I got the blue outline of a rectangle with a blue X in the middle on top of my color image. I guess I am being very dense today, how do I get the smart object to apply to the color image. When I double click the white layer about the color image in the layers palette, I get a cloud symbol in the lower right corner, when i then double click the white square I get the three layes I make into BW Tone Modifier. I am so confused, thank you for being so patient with me,,,,
Hi @regmikewall here are the steps in specific order:
1. Select the layers you want to add to your library (in this example I have Levels and Color Balance adjustment layers)

2. Click the + icon in the library and choose Add All as your option.

3. You should see a new object added - it auto names whatever the top layer is (color balance 1).

4. Go to your new image. Drag the object from the library onto your image and hit return/enter. This should add the object into the layers panel:


At this stage it wont do anything.
5. Right click the new Library object layer and Convert to Layers.

This "Expands" the object giving you your original two adjustment layers in order:

You can rearrange them as you wish at this point.