I cannot make a picture larger using either resampling or by using the resizing options. For some reason they no longer work AT ALL! HELP I have Photoshop Elements 2.0 and it has been working just fine, but I now have Windows 7. What is going on?
Frankly, I'm surprised you got Photoshop Elements 2 to install on Windows 7. The first version that is supported for that OS is Photoshop Elements 8.
Are you trying to perform a Free Transform (keyboard shortcut Ctrl+T)? Or are you using the Move tool and the control handles are not showing up? If the Move tool, make sure the "Show Bounding Box" option is checked in the Tool Options bar at the top. That is the name of the option in recent versions of Photoshop Elements, it may be different that far back... I don't remember.