Smart Object help

[Ponyboy Gold]

Hi,

I'm having trouble making a smart object that actually works. 

I've followed the youtube tutorials to a T. 

I open the file I'm working with and create a rectangle to make the smart object place the image inside it. Then I convert the layer to a smart object. But when I place the image inside the .psb file and save, it just places the image on the original psd right in the center. It doesnt make it free transformed to the rectangle that I had made as a smart object.  Like I said I followed the youtube tutorials exactly except mine does not work and I can't figure out why. I wish I could add more details but it seems what I did was already very specific. 

Here is the smartobject.psd  I made that is 88 mb and cant be uploaded because the max size is 47mb

https://drive.google.com/file/d/13V11nTC2_CYhwGqLwH3dp6PLPFkZalOl/view?usp=drive_link

[Ponyboy Gold]

Here is a video I made showing me creating the smart object and placing an image inside the .psb and it not working to free transform the image I put into the .psb.

I know Im doing something wrong here, but I thought I was following the youtube tutorials exactly right. 

Please advise. Thank you very much.

[Ponyboy Gold · Accepted solution]

Somehow I figured it out. I followed a text tutorial where I took a photo into the image I want to make a .psd out of. Then I made it a smart object before I free transformed it the way I wanted it. With this method it seems to work. I think I was free transforming it before I created the smart object the last time. I'm still confused in my head but I got it working.