[DigiDiva]

I am new to photoshop and have CS3. I am trying to create a panoramic from 3 images and have hit a problem. I have all of the photos open on photoshop. I use the move tool with the shift held down to layer them. I am then supposed to highlight the layers in blue by holding down shift and using the up/down keys before I auto align. What happens here is, the images nudge rather than highlight in blue!

Hope I am making sense here. I need to know how to highlight the layers in blue so I can auto align.

Can anyone help me?

Thanks a bunch