Delete Layer Problem

I create a new layer in Photoshop 7.0. I use the select tool to delete that layer to reveal the layer beneath. I press the delete key and nothing happens.

I have done this procedure before and it has worked. I think there is a setting that needs to be adjusted because I just can't get it to work now.

Can anyone help?

I drag my layers to the trash, or is this not what you mean?

There are two main ways of deleting a layer in PH7, and they both require you to open the Layers window (Windows>Layers), and select the layer in question.

1) Drage the layer into the trash can at the bottom right of the layers window.

2) Right click it toward the left hand side, and a menu should appear with an option for deleting that layer.

Hope this helps.