1. Creating a New File
Photoshop Elements 8

2. FILE > NEW > BLANK FILE
Click on File
Move the mouse over New
A new window will open to the right. Click on Blank File…
*NOTICE* Ctrl + N is a shortcut

3. New Document This window will open automatically
You may choose the size of your document at this screen.
When you are ready click the OK button

4. Your workspace should look similar to this when you are finished.
THE TOOL BAR MAY LOOK SLIGHTY DIFFERENT.
THIS IS OK

5. Paste your Selection
Ctrl + V or Edit > Paste to paste your selection onto the new document

6. Clean up your image with the eraser tool
Use the eraser tool to clean up your edges.
select a brush with a soft edge or hard edge

7. Use the Marquee to select your image and Resize it
Use the marquee tool to select your image
Use the Move tool to resize your image
You want your image to take up less than half of your work space