Photomerge in PSE 11 for Panoramic

[NancyMoranG]

I did a pano a few months back and got good result with some help from you all....
I just did another one and came out ok I think.

Then, immediately I tried to do another and it is acting different. Now when I want to make an adjustment on the pano, it says
Can't use the tool because more than 1 layer is selected..?

I actually didn't open layers.for either pano, just took them from Organizer and opened in Editor. With all files open at top, I hit 'Photo Merge-Pano" and it did the rest.
On 1st pano, it let me adjust and crop etc.
Now with I think same steps, it says I can't use the tools?

I did save them as 8 bit.
Hmmm...?