Can you find the problem here?
Well it isn't really a problem...
Can you see the layers panel on the right?
you can see that "layer 1"has some kind of mark on it:
this means the layer is a smart object.This is a very common problem in Photoshop CS5. At the beginning you won't notice a problem until you try to erase or edit the layer. You will get this error massage:
There is a very simple solution to that problem. In the layers panel right click on the layer then select "Rasterize object".
Follow as shown in the screenshot and the mark will disappear which means the layer isn't a smart object anymore.
Warning: you have to right click next to the layer icon not on it!
