Figure 1: creating a new image in photoshop

In the popup box that appears, give your image a name. Dont worry about the preset - leave this as is.

Enter an image size (width and height) and select OK.

Figure 2: entering image size and name

Stage 2 - Adding a layer to the image

Now we have an image, we can simply add a new layer to it. This is done simply. Select "layer" from the top menu, and "new layer".

Figure 3: creating a new layer in photoshop

Give your layer a descriptive name. This is a good habit to get into - when you are working with Photoshop files which contain "many" layers, you will be glad you did.

Figure 4: use a descriptive name for layers

Now you have an image with more then one layer, you will need to be able to manipulate the layers. This is done by selecting the layer you wish to work with, using the layers box.

Now the layer is selected, you can work with it :)