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I just bought Phototshop Elements and I'm not able to open the layers window at all? I have no idea how to, its greyed out. Does this version allow for layers?
In the PSE Editor does it help if you go to Image>Mode and click 8 bits/channel?
That is actually grayed out as well
My guess is that you are in Quick mode : you must be in " Expert " mode.
top menu line.