I started this project in the editor by opening a new file (white canvas) and setting the size as 8" x 10". I then created a new layer as I dragged each photo separately from the photo bin onto the canvas. I probably had about 35 layers before I was finished with 16 photos and text layers. Where did I go wrong?
By @meg576
Thanks for your screenshots. They confirmed my suspicions. The blank canvas you have used was much too small, smaller than the required pixel dimensions for a sharp 8 x 10. It does not matter if you add dozens of new layers from big files. You have to specify a canvas with the required size in inches AND necessarily with the resolution in ppi (pixels per inches), typically 300 ppi, even if 240 should be ok.
As I suspected, you have dragged the image components from the photobin to the canvas. This explains you have got 'smart' layers which point to their original images and don't lose quality if you enlarge your canvas.
In your case, you only have to use the menu "Image >> image size" and enter the values suggested by hatstead for a correct image size to start with.
You can either specify the pixels: 3000 x 2400 for instance, or the size in inches 10 x 8 PLUS the resolution.
That's equivalent. You'll get a correct psd which you can save as jpeg with the same size in pixels.
The key idea is to always think in terms of pixels. Size in inches is only meaningful at the time of printing.
The second lesson is that if you have only smart layers and text layers, they can keep all their quality if you "upsize" the image file in pixels.
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