Interesting. Are you using Elements on a Mac or Windows? I'm trying to
figure out why your copy of Elements, along with that of two other people,
doesn't work the way the copy I'm using does.
I'm using Elements 2 on Windows, and when I go to save a file, "JPEG" is
always an option. If I use it on a do***ent that has layers, selecting
"JPEG" automatically *unselects* the "Layers" checkbox in the Save As
dialog, and selects the "Save as Copy" checkbox. Those two checkboxes are
then grayed out, so that I can't modify them (as long as I still have "JPEG"
selected, that is).
Even with the "Save as Copy" checked, I can save over the original file
(should I be silly enough to do that

) just by doing and editing the
filename by removing the " copy" from the end.
All of the above is true when I've used only the red eye tool, or even if I
********ly add layers to the image.
The only thing I can think of is that the Mac version works a little
differently. But if you're using the Windows version, then I have no idea
what the difference might be. Very strange.
Well, I can certainly understand how the behavior you're seeing would make
you think you're going crazy.

Thankfully, it sounds like it's normal,
at least for some users.
Pete