In PDv4:
1. First, display the Layers palette (either right-click the PD work area and select "Show Layers", or from the menu select View | Show Layers.
2. Note the little black triangle in the upper right corner of the Layers palette. Click this, and select Merge Layers from the drop list.
Have fun!
Best regards,
Walt
"Life is a Zoo!
<http://home.comcast.net/~lifeisazoo>
Way cool step by step PhotoDeluxe graphic tutorials