First, it's better to add the image on another layer. And to get rid of the frame use
And click the image only once without dragging whatsoever.
To move it use
select the part you want to move and move/resize the picture (Hold Shift Key for a fixed ratio).
wandering around the forums for ages and not bothering to post, but this tut really got my attention. so i decided to start my first post with something sweet.
My first try, blue is my favorite color so it used it first