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Old 16-05-2008, 14:26
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I think the reason you couldn't create a new layer was becuase the file was INDEXED.

When you open up a .gif file in photoshop its colour mode will be set to 'indexed'. If you want to resize or change colours then change the colour mode to 'RGB' before doing any editing

Otherwise you will get very jagged edges, colour problems and no ability to use layers.

IMAGE > MODE > RGB
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