nikonbrain wrote:
Much easier answer .....open both images separately in photoshop,click on image you want to put in the other image ,duplicate image in drop down. use rectangular marque tool to frame image now click on edit , then drop down "copy merged ",go to the insert image ,click edit "paste'. New image is now on other image on a new layer.Now you can resize with transform tool after picking it with marque tool.
That's easier? You had to write a novel to explain your method. Dragging from Bridge into Photoshop is one step and it auto converts to a smart object on a layer of it's own when you do so.