(Mac users, replace Command for Ctrl, and Option for Alt wherever these keystrokes are referred to in the tutorial.)
In the layers palette, hide the color fill and background layer if they are showing. We want to just see the baby and her pumpkin on a transparent background.
Do Ctrl-A (Select all), then Edit > Copy Merged.
Go to File > New > Blank File. Set width to 4 inches, height to 5 inches, and Background to white. If we were really going to print this, we'd want a resolution of 200-300, but since this is a tutorial and we're not actually going to print you can use a resolution of 100. Type a name for the document and click OK to create a new file.
Go to Edit > Paste to drop the baby in on a new layer.
Select the move tool and drag the baby down to the lower portion of the canvas.
In the options bar, make sure "show bounding box" is checked then hold the shift key down as you drag one of the corner handles to resize the layer. (Holding the shift key maintains the proportions of the layer.) Size and position it so there is about a half inch of space along the bottom and two sides. When you have the size and position set, double click inside the bounding box to apply the transformation.
Next we'll use the new Photo Filter adjustment layer option to adjust the color of the baby. She's got a bit of an orange color cast and I want to give her more of a pinkish hue.


