Hey I am using photoshop 7.0 and I need some pretty basic help lol.

I have two pictures and i copied part of one onto another. Now I have more than one layer.

I used to have Photoshop elements 2.0, and if I wanted to resize part of an image or layer, I would select and use the mouse pointer tool, and there would be a dotted rectangle with anchor points on the corners and at the middle where you could re-size and rotate, now in photoshop it's not there. All I can do is move the pic around, not resize part of it or rotate it.

Do you understand what I'm trying to say? Any help?

thanks in advance

P.S. How do I rotate part of a pic or a layer?
you can use edit->transform->free transform, i think. its been a while. also rotate should be in the transform menu too.
I have no opinion on this matter.
Bingo, thanks a million.

Saved me countless hours searching through hundreds of menus.